Reversal of fortune: Macroeconomic policy, International Finance, and Banking in Japan

This essay provides an introduction and overview for a symposium on macroeconomic policy, international finance and banking in Japan. The symposium consists of thirteen papers. Nine of the papers including most of those on macroeconomic policy and international finance appear in this issue. The remaining papers including one on macroeconomic relations within the Asia-Pacific region and three on Japan's banking system will appear in a special section of the next issue of this journal.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47955/1/10368_2005_Article_42.pd

Japan's fiscal policy and fiscal reconstruction

June 13, 2005; revised December 19, 2004This paper investigates the macroeconomic effects of fiscal policy and the fiscal reconstruction movement in Japan. We first summarize Japan's fiscal policy in recent years and discuss advantages and disadvantages of government deficits. Next, we investigate the macroeconomic effects of Japanese fiscal policy and evaluate the plausibility of non-Keynesian effects. We also analyze the possibility of the crowding-in effect of fiscal policy and investigate the spillover effects of deregulation. Finally, we discuss political constraints in the fiscal reconstruction attempts and propose some measures for successful fiscal reforms in the near future.21世紀COEプログラム = 21st-Century COE Program32 p