Rebalancing in Japan: The Role of Private Consumption

Author/Editor: Tokuoka, Kiichi
Publication Date: December 01, 2010
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: Boosting growth through rebalancing is critical for addressing pressures from Japan’s aging population. This paper focuses on one important untapped source of growth - private consumption, and argues that the key to reviving consumption is boosting household disposable income through higher wages, especially in services, and higher property income. The paper also suggests that the impact of higher property income on consumption could be potentially large.
Series: Working Paper No. 10/293
Subject(s): Balance of trade | Demand | Housing prices | Income | Japan | Private consumption | Private investment | Private savings | Private sector | Stock prices | Wages

Author's Keyword(s): Rebalancing | Private consumption | Disposable income | Property income
Publication Date: December 01, 2010
Format: Paper
Stock No: WPIEA2010293 Pages: 21
US$18.00 (Academic Rate:
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