Title: Fiscal remedies for Japan's slump
First published: 2005
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.
Subjects: Economic conditions, Financial crises, Fiscal policy
Places: Japan
Time periods: 1989-
LC classification: HB1