The Effects of 'Gesell' (Currency) Taxes in Promoting Japan's Economic Recovery
AbstractThe traditional interest rate policy has lost its potency due to the zero-lower bound of nominal interest rates and the gradual accelerating deflation in Japan. Without stopping deflation, the Japanese government may face a rapid erosion of credit worthiness due to an uncontrolled budget deficit. In order to cope with this unusual situation, a non-traditional monetary policy measure is proposed. A negative nominal interest rate is needed to clear Japanese markets and can be achieved by levying a tax on all the government-guaranteed yen financial assets. This is a modified version of Gesell's stamp duty on currency for actual implementation in the contemporary context. The benefits and side effects of this tax for Japan are analyzed here.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d05-94.
Date of creation: Jun 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-06-27 (All new papers)
- NEP-MAC-2005-06-27 (Macroeconomics)
- NEP-PBE-2005-06-27 (Public Economics)
- NEP-SEA-2005-06-27 (South East Asia)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Willem H. Buiter, 2009.
"Negative Nominal Interest Rates: Three ways to overcome the zero lower bound,"
NBER Working Papers
15118, National Bureau of Economic Research, Inc.
- Buiter, Willem H., 2009. "Negative nominal interest rates: Three ways to overcome the zero lower bound," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 213-238, December.
- Willem H. Buiter, 2009. "Negative nominal interest rates: three ways to overcome the zero lower bound," LSE Research Online Documents on Economics 29297, London School of Economics and Political Science, LSE Library.
- Willem Buiter, 2009. "Negative Nominal Interest Rates: Three ways to overcome the zero lower bound," FMG Discussion Papers dp636, Financial Markets Group.
- Buiter, Willem H., 2009. "Negative Nominal Interest Rates: Three ways to overcome the zero lower bound," CEPR Discussion Papers 7346, C.E.P.R. Discussion Papers.
- Ulrich van Suntum & Metin Kaptan & Cordelius Ilgmann, .
"Reducing the lower bound on market interest rates,"
200103, Institute of Spatial and Housing Economics, Munster Universitary.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tatsuji Makino).
If references are entirely missing, you can add them using this form.