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.
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Front Matter Page
INTERNATIONAL MONETARY FUND
JAPAN
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
Contents
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