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Comment on “Recursive expectations approach in policymaking” by Professor Keiichiro Kobayashi

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  • Tomomi Miyazaki

    (Kobe University)

Abstract

Professor Keiichiro Kobayashi discusses the relationship between recursive thinking (the ability to think about what others are thinking) and policy making in Japan in his paper “Recursive Expectations Approach in Policymaking” (Kobayashi in Int J Econ Policy Stud, 2023). It would be difficult to streamline a deeply entrenched system by relinquishing some other rules that have historically functioned well within an organization. Thus, the vertically divided administration within the bureaucratic system, which hampers recursive thinking of policy makers, is hard to be reformed. I propose that both fiscal rules and an independent fiscal institution (IFI) are recommended in Japan not only as a commitment device to make fiscal policy sustainable in the long-run but also as a measure to curb the negative effects caused by the lack of recursive thinking of policy makers.

Suggested Citation

  • Tomomi Miyazaki, 2023. "Comment on “Recursive expectations approach in policymaking” by Professor Keiichiro Kobayashi," International Journal of Economic Policy Studies, Springer, vol. 17(2), pages 399-402, August.
    • Handle: RePEc:spr:ijoeps:v:17:y:2023:i:2:d:10.1007_s42495-023-00116-w
    DOI: 10.1007/s42495-023-00116-w
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    References listed on IDEAS

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    1. Jonathan Portes & Simon Wren-Lewis, 2015. "Issues in the Design of Fiscal Policy Rules," Manchester School, University of Manchester, vol. 83, pages 56-86, September.
    2. Keiichiro Kobayashi & Kozo Ueda, 2022. "Secular Stagnation and Low Interest Rates under the Fear of a Government Debt Crisis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(4), pages 779-824, June.
    3. Keiichiro Kobayashi, 2023. "Recursive expectations approach in policymaking," International Journal of Economic Policy Studies, Springer, vol. 17(2), pages 385-397, August.
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