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Policies and Prospects in Japan and the Implications for the Asia-Pacific Region

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  • Mr. Tim Callen
  • Warwick J. McKibbin

Abstract

This paper uses the G-Cubed (Asia-Pacific) model-a macroeconomic model with rich cross-country links-to explore the implications for Japan and Asia of several shocks to the Japanese economy. The results suggest that, while fiscal consolidation in Japan would initially dampen domestic growth, over the medium term the impact on both the domestic and regional economies would be positive. Quantitative monetary easing in Japan would boost domestic activity in the short-run, while being basically neutral for the region. Finally, a loss of confidence in the yen would be negative for Japan, but positive for the region because of a reallocation of capital flows toward non-Japan Asia.

Suggested Citation

  • Mr. Tim Callen & Warwick J. McKibbin, 2001. "Policies and Prospects in Japan and the Implications for the Asia-Pacific Region," IMF Working Papers 2001/131, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2001/131
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    12. Mohd Azlan Shah Saidi & Zulkefly Abdul Karim & Zurina Kefeli@Zulkefli, 2018. "Impact of China on Malaysian Economy: Empirical Evidence of Sign-Restricted Structural Vector Autoregression (SVAR) Model," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 14(2), pages 25-44.
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    15. Ľudmila Lipková, 2012. "Ekonomické reformy v Kórejskej ľudovodemokratickej republike," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(4), pages 36-52.
    16. Ľubomír Čech, 2012. "Faktory rozvoja a radikalizácie islamu v regióne Strednej Ázie," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(4), pages 73-85.
    17. Katarína Brocková, 2012. "Nová európska investičná politika a jej dopad na osud bilaterálnych investičných dohôd členských štátov EÚ (2. časť)," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(4), pages 27-35.

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