TY  - JOUR
AU  - Ball,Laurence
TI  - Fiscal Remedies for Japan's Slump
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11374
PY  - 2005
Y2  - May 2005
UR  - http://www.nber.org/papers/w11374
L1  - http://www.nber.org/papers/w11374.pdf
N1  - Author contact info:
Laurence M. Ball
Department of Economics
Johns Hopkins University
Baltimore, MD 21218
Tel: 410/516-7605
Fax: 410/516-7600
E-Mail: lball@jhu.edu
AB  - This paper asks how a fiscal expansion would affect Japan. It uses a textbook-style macro model calibrated to fit the Japanese economy. According to the results, Japan%u2019s output slump would be ended by a fiscal transfer of 6.6% of GDP. This policy raises the debt-income ratio in the short run, but it reduces this ratio in the long run through higher inflation and tax revenue.  The financing of the transfer -- bonds or money -- affects debt in the short run but not the long run.
ER  -