Raising the Consumption Tax in Japan: Why, When, How?
Business & Finance, Economics, Money & Monetary Policy, Macroeconomics
| Author: | Kenneth Mr. Kang, Michael Mr. Keen, Mahmood Pradhan, Ruud A. Mooij | ISBN: | 9781463982812 |
| Publisher: | INTERNATIONAL MONETARY FUND | Publication: | June 16, 2011 |
| Imprint: | INTERNATIONAL MONETARY FUND | Language: | English |
| Author: | Kenneth Mr. Kang, Michael Mr. Keen, Mahmood Pradhan, Ruud A. Mooij |
| ISBN: | 9781463982812 |
| Publisher: | INTERNATIONAL MONETARY FUND |
| Publication: | June 16, 2011 |
| Imprint: | INTERNATIONAL MONETARY FUND |
| Language: | English |
The note will make the case for a substantial increase in the VAT in Japan as a core measure of fiscal consolidation, assess its macroeconomic impact (on real activity and inflationary expectations), consider key elements in its design and implementation (dealing with the distributional consequences; ‘big-bang’ versus preannounced step increases); the importance of retaining a single rate and adopting compensating spending measures as needed) and a range of related issues (such as the pros and (likely even larger) cons of earmarking).
The note will make the case for a substantial increase in the VAT in Japan as a core measure of fiscal consolidation, assess its macroeconomic impact (on real activity and inflationary expectations), consider key elements in its design and implementation (dealing with the distributional consequences; ‘big-bang’ versus preannounced step increases); the importance of retaining a single rate and adopting compensating spending measures as needed) and a range of related issues (such as the pros and (likely even larger) cons of earmarking).
