Japan: Spillover Report for the 2011 Article IV Consultation and Selected Issues
IMF Staff Country Reports, July 19, 2011
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- Japan: Spillover Report for the 2011 Article IV Consultation and Selected Issues
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Bibliographic details
- Published: July 19, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781462328451.002
Executive findings
- Japan’s position is one of the largest and richest economies in the world.
- Tokyo as a financial marketplace is not a major intermediator of global capital flows.
- The current macroeconomic environment is conducive to spillovers being larger than captured by the empirical analysis.
- Apart from heading off tail risks, fiscal consolidation in Japan would have medium to long-term benefits for its partner countries.
- Exchange rate-related spillovers on foreign financial markets are found to be small and depend partly on policy developments abroad.
Policy implications and recommendations
- Pursue fiscal consolidation to reduce tail risks and deliver medium to long-term benefits to partner countries.
- Monitor macroeconomic conditions closely given the potential for spillovers to exceed estimates from empirical models.
- Consider coordination or information-sharing with partner countries on exchange rate and financial market developments, noting that exchange rate-related spillovers are small but partly driven by foreign policy developments.
Subject areas and analytical focus
- Subjects: Exports, Financial institutions, Financial sector policy and analysis, Financial services, Fiscal consolidation, Fiscal policy, International trade, Spillovers, Stocks, Yield curve
- Keywords: Asia and Pacific, banking system, carry trade, CR, Europe, exchange rate, Exports, financial market, Fiscal consolidation, Global, interest rate, ISCR, Japan, real GDP, spillover issue, Spillovers, Stocks, trade surplus, Yield curve
International Monetary Fund. "Japan: Spillover Report for the 2011 Article IV Consultation and Selected Issues", IMF Staff Country Reports 2011, 183 (2011), accessed 9/13/2026, https://doi.org/10.5089/9781462328451.002
Content in this bundle
- Conclusions