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How Should One Evaluate Fiscal Conditions? A Study Based on the Comparison Between Japan and Australia

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  • Jun Ikeda

Abstract

In comparing fiscal indicators of Japan and Australia, it is generally perceived that Japan’s fiscal conditions are very serious and those of Australia are very sound. However, in Australia the rising ratio of foreign liabilities to GDP is the source of anxiety in the market, which in turn reduces the flexibility of fiscal policy. If such economic conditions are considered, the evaluation of Australia’s fiscal conditions is worse than one based on fiscal indicator alone, while the opposite relationship is the case for Japan. The fiscal conditions of the two countries are a good example to demonstrate that fiscal conditions should be evaluated as part of economic conditions.

Suggested Citation

  • Jun Ikeda, 2007. "How Should One Evaluate Fiscal Conditions? A Study Based on the Comparison Between Japan and Australia," Asia Pacific Economic Papers 364, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:364
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    File URL: https://crawford.anu.edu.au/pdf/pep/apep-364.pdf
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    References listed on IDEAS

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    1. J. D. Pitchford, 1989. "A Sceptical View of Australia's Current Account and Debt Problem," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 22(2), pages 5-14, June.
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    Cited by:

    1. Bayari, Celal, 2012. "Australian Trade and FDI Relations with Japan: Reflecting on the Past Seven Decades," MPRA Paper 102292, University Library of Munich, Germany, revised 19 Aug 2012.

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    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies

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