The Impact of Fiscal Consolidation and Structural Reforms on Growth in Japan
AbstractWith Japan’s public debt reaching historical levels, the need for fiscal consolidation and structural reforms have increased. As fiscal consolidation will require a sustained and large adjustment in the fiscal balance, its growth effect is a concern particularly for the short run. This paper uses the IMF’s Global Integrated Monetary and Fiscal Model to analyze the growth impact of fiscal consolidation and structural reforms. Although fiscal consolidation has short-term costs, the potential long-term benefits are considerable, and reforms that raise potential growth could support consolidation. Simulations show that the external environment also matters but domestic policies should be the priority.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 11/13.
Date of creation: 01 Jan 2011
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-26 (All new papers)
- NEP-CMP-2011-02-26 (Computational Economics)
- NEP-FDG-2011-02-26 (Financial Development & Growth)
- NEP-MAC-2011-02-26 (Macroeconomics)
- NEP-PBE-2011-02-26 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kozo Kiyota & Takanobu Nakajima & Kiyohiko G. Nishimura, 2009. "Measurement of the market power of firms: the Japanese case in the 1990s," Industrial and Corporate Change, Oxford University Press, vol. 18(3), pages 381-414, June.
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