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Can the Democratic Party of Japan Implement a New Economic Policy?

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  • Evelyne Dourille-Feer

Abstract

In August 2009, for the first time since 1955, an opposition party, the Democratic Party of Japan, won a clear mandate to form a new government, ousting the incumbent Liberal Democratic Party. Its initial economic reform programme of refocusing growth on domestic demand using large social transfers has come under severe political pressure, including within the current majority, with the supporters of Naoto Kan in favour of reining in budget spending and those of Ichiro Ozawa partisans of a vigorous economic stimulation policy. Naoto Kan's election as President of the Democratic Party keeps him in the post of Prime Minister and seems to confirm the shift in the DPJ's economic policy towards one of tighter control of public finances.

Suggested Citation

  • Evelyne Dourille-Feer, 2010. "Can the Democratic Party of Japan Implement a New Economic Policy?," La Lettre du CEPII, CEPII research center, issue 301.
    • Handle: RePEc:cii:cepill:2010-301
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    Keywords

    JAPAN;

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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