Abstract
Japan faces four fiscal challenges. Its population is aging. Its economy is stagnant. Its budget is massively in deficit. And the organization of spending and taxing authority between the central and local governments is not well designed to encourage efficient provision of public services.
The views expressed here are my own and do not necessarily represent those of the trustees, officers, or staff of The Brookings Institution. I thank my colleague, Barry Bosworth, for constructive criticisms and helpful suggestions, and Professor Noriyuki Takayama for correcting my misunderstandings of the operation of the recent pension legislation.
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© 2006 International Monetary Fund
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Aaron, H.J. (2006). Medium-Term Strategies for Long-Term Goals. In: Kaizuka, K., Krueger, A.O. (eds) Tackling Japan’s Fiscal Challenges. Procyclicality of Financial Systems in Asia. Palgrave Macmillan, London. https://doi.org/10.1057/9781137001566_5
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DOI: https://doi.org/10.1057/9781137001566_5
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