Below zero
Article Abstract:
Japan plans to reduce taxes and increase spending to help boost economic growth, and bond yields are low, with ten-year government bonds at 0.81%. Investors appear to expect prices and output to drop for some ten years. The total budget deficit, including both local and central government, will reach an estimated 10.2% of gross domestic product for the 1998 to 1999 financial year. Markets are treating the Japanese government well despite the deficit, and this is partly because Japan's current account surplus is increasing and there are very low levels of foreign currency debts.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Spend, dammit!
Article Abstract:
The Japanese government aims to use a fiscal stimulus to boost the economy, and much of this spending is to come from local government. This has created problems for local government, since debt levels are increasing and central government does not provide a guarantee for local government bond holders. Some local authorities may reduce spending due to their financial problems, and they will need aid if they are to increase spending. There are calls for local government to be given a larger share of taxes on consumption.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Who prints the yen?
Article Abstract:
There are divisions among Japanese policymakers in issues such as exchange rates and printing money. There is concern about public finance, and a leaked report estimates that the budget deficit will amount to 10% of Japan's gross domestic product for 1998 to 1999. The postal-savings system is faced with high-interest deposits maturing in 2000 to 2001, while the Japanese yen has risen in value. The Bank of Japan is concerned about buying government bonds in case the market reaction is unfavorable.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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