Front Matter

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.

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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

Japan: Economic and Policy Developments
Author: International Monetary Fund