The Impact of Fiscal Consolidation and Structural Reformson Growth in Japan / Pelin Berkmen.

Format:

Book

Government document

Author/Creator:

Berkmen, Pelin.

Series:

IMF Working Papers; Working Paper ; No. 2011/013

IMF Working Papers

Language:

English

Subjects (All):

Fiscal policy--Japan--Econometric models.

Fiscal policy.

Monetary policy--Japan--Econometric models.

Monetary policy.

Structural adjustment (Economic policy)--Japan--Econometric models.

Structural adjustment (Economic policy).

Fiscal policy--Econometric models.

Physical Description:

1 online resource (33 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2011.

Language Note:

English

Summary:

With Japan’s public debt reaching historical levels, the need for fiscal consolidation and structural reforms have increased. As fiscal consolidation will require a sustained and large adjustment in the fiscal balance, its growth effect is a concern particularly for the short run. This paper uses the IMF’s Global Integrated Monetary and Fiscal Model to analyze the growth impact of fiscal consolidation and structural reforms. Although fiscal consolidation has short-term costs, the potential long-term benefits are considerable, and reforms that raise potential growth could support consolidation. Simulations show that the external environment also matters but domestic policies should be the priority.

Contents:

Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Model; III. Calibration; IV. Impact of Fiscal Consolidation on Growth; V. Impact of Combined Policy Package of Fiscal Consolidation and Structural Reforms; 1. Fiscal Consolidation and Structural Reforms in Japan; VI. Spillovers from the Rest of the World; 2. Fiscal Consolidation and Structural Reforms in Japan and the Rest of the Regions; VII. Conclusions; Appendix; 1. Long Run Growth Rates and Interest Rates; 2. Utility Functions; 3. Elasticities of Substitution; 4. Steady State Markups

5. Steady State Expenditure to GDP Ratios6. Steady State Factor Shares and Depreciation Rates; 7. Miscellaneous Steady State Ratios and Parameters; 8. Financial Accelerator; 9. Monetary Rule Parameters; 10. Fiscal Rule Parameters; References; Footnotes

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed September 24, 2014).

ISBN:

9786613868992

9781462326464

1462326463

9781455247837

1455247839

9781283556545

1283556545

9781455214822

1455214825