IMF Staff Country Reports

Japan: Selected Issues

Publication Date:

July 14, 2010

Electronic Access:

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Summary:

Although fiscal consolidation has short-term costs, the potential long-term benefits are considerable. Although adjustment is important for securing fiscal sustainability, reforms that raise potential growth could also support consolidation. Simulations show that the external environment also matters, but domestic policies should be the priority to raise medium-term growth. In Japan, public policies can help create an environment for more effective capital formation. For Japan, reforms to stimulate private consumption hold significant promise for boosting growth, and this could be achieved by boosting household disposable income.

Series:

Country Report No. 2010/212

Subject:

Disposable income Fiscal consolidation Fiscal policy Income Labor National accounts Private consumption Wages