IDEAS home Printed from https://ideas.repec.org/p/eti/rdpsjp/13032.html
   My bibliography  Save this paper

What Can Japan Learn from the Swedish Budget Consolidation? (Japanese)

Author

Listed:
  • OKINA Yuri

Abstract

Achieving fiscal consolidation along with economic growth has become an extremely important issue in Japan. In the case of Sweden, after the financial crisis of the early 1990s, the government embarked upon a program of fiscal consolidation. Social security benefits cuts proved effective in reducing the fiscal deficit. Also, the introduction of a fiscal restructuring framework in 1997 and the formulation of rules to ensure that the fiscal deficit would be reduced reasonably and in line with the economic cycle assured Sweden's fiscal restructuring was sustainable. A major reason behind the success of Sweden's fiscal restructuring is that it was conducted in tandem with economic growth. Furthermore, it was able to be sustained largely because of increased exports due to significant exchange rate depreciation and increased productivity following companies' adoption and implementation of information technology (IT). Japan needs to cut wasteful expenditures, but, if fiscal restructuring is to be achieved along with economic growth, it will be important to ensure that fiscal restructuring is not rushed and domestic demand is not forced to contract, efforts are made to boost long-term labor productivity, long-term export bases remain—with efforts made to improve the appeal of their location, and the domestic markets are opened and high quality investments are made.

Suggested Citation

  • OKINA Yuri, 2013. "What Can Japan Learn from the Swedish Budget Consolidation? (Japanese)," Discussion Papers (Japanese) 13032, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:rdpsjp:13032
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/13j032.pdf
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:13032. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (KUMAGAI, Akiko). General contact details of provider: http://edirc.repec.org/data/rietijp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.