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Japan's Fiscal Policy and Fiscal Reconstruction

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  • Toshihiro Ihori
  • Atsushi Nakamoto

Abstract

This paper investigates the macroeconomic effects of fiscal policy and the fiscal reconstruction movement in Japan. We first summarize Japan's fiscal policy in recent years and discuss advantages and disadvantages of government deficits. Next, we investigate the macroeconomic effects of Japanese fiscal policy and evaluate the plausibility of non-Keynesian effects. We also analyze the possibility of the crowding-in effect of fiscal policy and investigate the spillover effects of deregulation. Finally, we discuss political constraints in the fiscal reconstruction attempts and propose some measures for successful fiscal reforms in the near future.

Suggested Citation

  • Toshihiro Ihori & Atsushi Nakamoto, 2005. "Japan's Fiscal Policy and Fiscal Reconstruction," Hi-Stat Discussion Paper Series d05-99, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:hstdps:d05-99
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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2005/pdf/D05-99.pdf
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    Cited by:

    1. W. R. Garside, 2012. "Japan’s Great Stagnation," Books, Edward Elgar Publishing, number 14624.

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