Japan: Staff Report for the 2006 Article IV Consultation
IMF Staff Country Reports, July 28, 2006
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- Japan: Staff Report for the 2006 Article IV Consultation
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Bibliographic details
- Published: July 28, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451820676.002
Key findings and summary
- Japan showed strong economic recovery from the crisis.
- Executive Directors welcomed the development and stressed the need for:
- a strong monetary framework,
- well-designed fiscal consolidation, and
- structural reforms.
- Directors agreed that the Bank of Japan’s monetary framework is well suited to the post deflation environment and welcomed the improvement in transparency.
- Directors appreciated the progress in fiscal consolidation and structural reforms.
- Directors encouraged the authorities to maintain an ambitious reform program to support balanced global growth and an orderly resolution of global current account imbalances.
Monetary framework and inflation
- The Bank of Japan’s monetary framework is deemed well suited to the post deflation environment.
- Improvement in transparency at the Bank of Japan was welcomed by Directors.
Fiscal consolidation and structural reforms
- Progress in fiscal consolidation was appreciated by Directors.
- Structural reforms were acknowledged as progressing; Directors urged continuation of an ambitious reform program.
Policy implications and recommendations
- Maintain a strong monetary framework.
- Pursue well-designed fiscal consolidation.
- Continue and maintain ambitious structural reform efforts to:
- support balanced global growth, and
- contribute to an orderly resolution of global current account imbalances.