Fiscal remedies for Japan's slump
By: Laurence Ball.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11374; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11374.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Fiscal policy -- Japan.; Financial crises -- Japan.; Japan -- Economic conditions -- 1989-
Description: "This paper asks how a fiscal expansion would affect Japan.  It uses a textbook-style macro model calibrated to fit the Japanese economy.  According to the results, Japan%u2019s output slump would be ended by a fiscal transfer of 6.6% of GDP.  This policy raises the debt-income ratio in the short run, but it reduces this ratio in the long run through higher inflation and tax revenue.  The financing of the transfer -- bonds or money -- affects debt in the short run but not the long run"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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