The Deteriorating Fiscal Situation and an Aging Population
In: Structural Impediments to Growth in Japan
Japan's deteriorating fiscal situation has attracted international attention. I assess what current Japanese government policies mean for the future of public debt and the economy in general, given the inevitable aging of the population. I review how Japan got into this current fiscal mess, and then perform an analysis of some debt dynamics. With unchanged fiscal policies, Japan's public debt will rise to between 260% and 380% of GDP in 2030, and to between 700% and 1300% in 2040 -- clearly unsustainable levels. For the debt to be sustainable, significant increases in taxes, or cuts in government spending are necessary.
(This abstract was borrowed from another version of this item.)
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- Takero Doi & Takeo Hoshi, 2003.
"Paying for the FILP,"
in: Structural Impediments to Growth in Japan, pages 37-70
National Bureau of Economic Research, Inc.
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NBER Working Papers
9368, National Bureau of Economic Research, Inc.
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"An Aging Society: Opportunity Or Challenge,"
553, Massachusetts Institute of Technology (MIT), Department of Economics.
- repec:fth:harver:1490 is not listed on IDEAS
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