SYDNEY – U.S. Treasury Secretary Jacob Lew urged Japan on Friday to stay firm on implementing its growth strategy, the third and final arrow of Shinzo Abe’s economic policy package, dubbed “Abenomics.”
The first two arrows of Abe’s stimulus program “have helped, no doubt,” Lew said in his speech in Sydney, referring to the Bank of Japan’s bold monetary easing and timely fiscal spending by the government.
“Japan very much needs to get on with the third arrow of Abenomics,” he said, adding that “they have to be serious.”
Lew, here to attend a two-day meeting of finance ministers and central bank chiefs of the Group of 20 advanced and emerging economies from Saturday, urged China to place priority on structural reforms. “China should sacrifice short-term growth for more stable long-term growth,” he said.
“Emerging markets need to take appropriate steps to ensure their economies,” Lew said, touching on the impact of the U.S. Federal Reserve’s tapering of its quantitative easing.