Strategies for fiscal consolidation in Japan /
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| Author / Creator: | Botman, Dennis (Dennis Petrus Johannes) |
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| Imprint: | [Washington, D.C.] : International Monetary Fund, 2007. |
| Description: | 1 online resource (22 pages) : illustrations |
| Language: | English |
| Series: | IMF working paper ; WP/07/37. |
| Subject: | |
| Format: | E-Resource Book |
| URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/13510615 |
| Summary: | Japan's key fiscal challenge is to put public finances on a more sustainable footing. This paper investigates the macroeconomic implications of alternative fiscal strategies for Japan using the IMF's Global Fiscal Model. The results suggest that: (i) an adjustment package that achieves primary balance through lower social transfers and government spending and a higher VAT is the most viable option and has a smaller negative impact on growth than other fiscal measures; (ii) achieving primary balance is not sufficient to stabilize the net debt ratio; (iii) prefunding future aging costs provides greater long-term benefits compared with less front-loaded strategies; (iv) tax reform involving shifting from corporate taxation to consumption taxation could mitigate the short-term output losses associated with fiscal consolidation; and (v) the spillovers to the rest of the world from consolidation in Japan are positive in the medium term, but modest. |
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| Physical Description: | 1 online resource (22 pages) : illustrations |
| Format: | Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. |
| Bibliography: | Includes bibliographical references (pages 21-22). |
| ISBN: | 1283512483 9781283512480 1451910541 9781451910544 9781451989342 1451989342 1462367941 9781462367948 9786613824936 6613824933 |