Front Matter Page
© 1999 International Monetary Fund
October 1999
IMF Staff Country Report No. 99/114
Japan: Economic and Policy Developments
This Economic and Policy Developments report on Japan was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. As such, the views expressed in this document are those of the staff team and do not necessarily reflect the views of the Government of Japan or the Executive Board of the IMF.
Copies of this report are available to the public from
International Monetary Fund • Publication Services
700 19th Street, N.W. • Washington, D.C. 20431
Telephone: (202) 623-7430 • Telefax: (202) 623-7201
Telex (RCA): 248331 IMF UR
E-mail: publications@imf.org
Internet: http://www.imf.org
Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
Front Matter Page
INTERNATIONAL MONETARY FUND
JAPAN
Economic and Policy Developments
Prepared by J. Morsink, R. Ramaswamy, M. Mühleisen and I. Oishi (all APD)
Approved by the Asia and Pacific Department
September 28, 1999
Contents
Selected Economic Indicators, 1992–2000
I. Real Sector Developments
A. Introduction
B. Components of Aggregate Demand
C. Labor Market and Price Developments
D. National Income Accounts
References
Figures
I.1. Growth and Volatility Comparisons
I.2. Gross Domestic Product at 1990 Prices, 1990–99
I.3. Trends in Private Consumption
I.4. Indicators of Business Activity and Investment, 1985–99
I.5. Residential Investment and Inventory Investment
I.6. External Sector Developments, 1990–99
I.7. Labor Market Conditions, 1990–99
I.8. Price Indicators, 1990–99
Tables
I.1. Growth of Real GDP and Demand Components, 1993–99
II. Fiscal Policy Developments
A. Recent Stimulus Policies
B. The Financial Situation of Local Governments
C. FILP Operations and Government Bond Markets
D. Fiscal Transparency in Japan
References
Text Boxes
II.1. Central-Local Government Relations
II.2. TFB Loans for Local Allocation Tax Grants
Figures
II.1. General Government Fiscal Operations, FY1973–99
II.2. 10-Year Government Bond Yields
II.3. Increase in Outstanding Government Bonds by Holder
Tables
II.1 Summary of Economic Stimulus Packages, 1993–98
II.2. Tax Receipts of the Central Government General Account, FY1994–99
II.3. Central Government Account Budget, FY 1994–99
II.4. General Government Operations, 1996–99
II.5. Central Government Bond Issues, FY1990–99
II.6. General Government Public Works Projects
II.7. Local Government Operations
II.8. Trust Fund Bureau Operations
II.9. Fiscal Investment and Loan Program (FILP), FY1994–99
II.10. Primary Government Bond Issues by Purchaser
III. Monetary Developments
A. Monetary Policy Developments
B. Measures to Support Bank Lending
C. Remaining Policy Options to Ease Monetary Policy
References
Figures
III.1 Bank Funding Premia
III.2. Selected Interest Rates, 1997–99
III.3. Nominal Monetary Conditions Index, 1997–99
III.4. Excess Deposits at BOJ, 1997–99
III.5. Yield Curves
III.6. Money and Credit Growth, 1997–99
III.7. Credit Guarantees and Bankruptcies, 1997–99
III.8. Commercial Paper Market
Tables
III.1. BOJ Balance Sheet
IV. Banking System Issues
A. Overview
B. Main Policy Developments
C. Remaining Challenges
References
Figures
IV.1 Banking System Strains, 1997–99
IV.2. Major Banks’Profits, FY1988–98
IV.3. Postal Saving Deposits, 1987–99
Tables
IV.1. Major Banks’ Profits and Capital, FY 1997–98
IV.2. Major Banks’ Problem Loans, March 1999
IV.3. Estimated Uncovered Loan Losses, September 1998
IV.4. Financial Supervisory Agency’s Special Inspections
IV.5. Public Capital Injections, March 1999
IV.6. Major Banks’ Restructuring Plans, FY1998 to FY2002
V. Structural Reform and Deregulation
A. Background
B. Recent Developments
References
Text Boxes
V.1. OECD Report on Regulatory Reforms
Figures
V.1. Foreign Assets and Liabilities
Tables
V.1. Foreign Exchange Liberalization During the 1980s and 1990s
V.2. Foreign Securities Holdings, March 1998–March 99