European Parliament Library

The Impact of Fiscal Consolidation and Structural Reformson Growth in Japan, Pelin Berkmen

With Japan’s public debt reaching historical levels, the need for fiscal consolidation and structural reforms have increased. As fiscal consolidation will require a sustained and large adjustment in the fiscal balance, its growth effect is a concern particularly for the short run. This paper uses the IMF’s Global Integrated Monetary and Fiscal Model to analyze the growth impact of fiscal consolidation and structural reforms. Although fiscal consolidation has short-term costs, the potential long-term benefits are considerable, and reforms that raise potential growth could support consolidation. Simulations show that the external environment also matters but domestic policies should be the priority
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Model; III. Calibration; IV. Impact of Fiscal Consolidation on Growth; V. Impact of Combined Policy Package of Fiscal Consolidation and Structural Reforms; 1. Fiscal Consolidation and Structural Reforms in Japan; VI. Spillovers from the Rest of the World; 2. Fiscal Consolidation and Structural Reforms in Japan and the Rest of the Regions; VII. Conclusions; Appendix; 1. Long Run Growth Rates and Interest Rates; 2. Utility Functions; 3. Elasticities of Substitution; 4. Steady State Markups
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (33 p.)
Specific Material Designation
Form Of Item

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