Front Matter

Front Matter Page

© 2010 International Monetary Fund

July 2010

IMF Country Report No. 10/212

Japan: Selected Issues

This Selected Issues paper on Japan was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on June 17, 2010. 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.

The policy of publication of staff reports and other documents by the IMF allows for the deletion of market-sensitive information.

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

E-mail: Internet:

International Monetary Fund

Washington, D.C.

Front Matter Page



Selected Issues

Prepared by Pelin Berkmen, Jinsook Lee, Murtaza Syed, and Kiichi Tokuoka (all APD)

Approved by the Asia and Pacific Department

June 17, 2010


  • I. The Impact of Fiscal Consolidation and Structural Reforms on Growth in Japan

    • A. Introduction

    • B. Impact of Fiscal Consolidation on Growth

    • C. Impact of Combined Policy Package of Fiscal Consolidation and Structural Reforms

    • D. Spillovers from the Rest of the World

    • E. Conclusions

    • References

    • Appendix

  • II. Raising Medium-Term Growth: What Role can Investment Play?

    • A. Introduction

    • B. Recent Investment Trends

    • C. Econometric Analysis: What Explains these Trends?

    • D. Policy Implications

    • E. Conclusion

    • References

  • Tables

  • II.1. Non Financial Corporate Indicators

  • II.A1. Japan and Other Advanced Economies: Determinants of Fixed Investment

  • II.A2. Determinants of R&D Spending

  • III. Boosting Private Consumption in Japan

    • A. Introduction

    • B. Stylized Facts of Private Consumption

    • C. Drivers of Private Consumption

    • D. Policy Implications

    • E. Conclusion

    • References

  • Figures

  • III.1. Private Consumption and Household Disposable Income

  • III.2. Household Saving Rate

  • III.3. Household Property Income

  • III.4. Household Financial Assets: Japan and U.S.

  • III.5. Corporate Dividend Payout

  • Tables

  • III.1. Japan Regression Results

Japan: Selected Issues
Author: International Monetary Fund