Policies and Prospects in Japan and the Implications for the Asia-Pacific Region

This paper uses the G-Cubed (Asia-Pacific) model-a macroeconomic model with rich cross-country links-to explore the implications for Japan and Asia of several shocks to the Japanese economy. The results suggest that, while fiscal consolidation in Japan would initially dampen domestic growth, over th...

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Bibliographic Details
Main Author: Callen, Tim
Other Authors: McKibbin, Warwick
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2001
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation 
653 |a Stocks 
653 |a Pension Funds 
653 |a Finance 
653 |a Public finance & taxation 
653 |a Financial services 
653 |a Real interest rates 
653 |a Financial Instruments 
653 |a Fiscal Policy 
653 |a Open Economy Macroeconomics 
653 |a Fiscal consolidation 
653 |a Trade: General 
653 |a Exports and Imports 
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653 |a Exports 
653 |a Investments: Stocks 
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653 |a Macroeconomics 
653 |a Interest Rates: Determination, Term Structure, and Effects 
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520 |a This paper uses the G-Cubed (Asia-Pacific) model-a macroeconomic model with rich cross-country links-to explore the implications for Japan and Asia of several shocks to the Japanese economy. The results suggest that, while fiscal consolidation in Japan would initially dampen domestic growth, over the medium term the impact on both the domestic and regional economies would be positive. Quantitative monetary easing in Japan would boost domestic activity in the short-run, while being basically neutral for the region. Finally, a loss of confidence in the yen would be negative for Japan, but positive for the region because of a reallocation of capital flows toward non-Japan Asia