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Implementing Japanese Recovery

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  • Adam S. Posen

    ()
    (Peterson Institute for International Economics)

Abstract

As ever in Japanese economic policy, the reality is in the implementation. The banking reform bills passed by the Japanese Diet in mid-October and the fiscal stimulus package contained in the FY1999 budget proposed by the Obuchi government address the two major barriers to a restoration of confidence in Japan: financial fragility and lack of domestic demand. Combined with the Bank of Japan's efforts already underway to stop deflation, these initiatives could bring about a sustained recovery in Japan (and provide a floor under developments in the rest of Asia)--if they are properly carried out.

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Bibliographic Info

Paper provided by Peterson Institute for International Economics in its series Policy Briefs with number PB99-01.

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Date of creation: Jan 1999
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Handle: RePEc:iie:pbrief:pb99-01

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