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Fiscal policy and fiscal reconstruction in Japan

Toshihiro Ihori ()

International Tax and Public Finance, 2006, vol. 13, issue 4, 489-508

Abstract: This paper investigates the macroeconomic effect of fiscal policy and the fiscal reconstruction movement in Japan. I first summarize Japanese fiscal policy in the recent years and discuss sustainability of government deficits. Then, I investigate the macroeconomic effect of Japanese fiscal policy and evaluate the plausibility of the Keynesian and non-Keynesian effects. I also analyze political constraints in the fiscal reconstruction attempts and the possibility of crowding-in effect of fiscal reform. Finally, I discuss some measures for the successful fiscal reconstruction reform in the near future. Copyright Springer Science + Business Media, LLC 2006

Keywords: Japanese fiscal policy; Fiscal reconstruction; Government deficits (search for similar items in EconPapers)
Date: 2006
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Handle: RePEc:kap:itaxpf:v:13:y:2006:i:4:p:489-508