The Case for an Independent Fiscal Institution in Japan

August 2, 2016

Preview Citation

Format: Chicago

George Kopits. The Case for an Independent Fiscal Institution in Japan, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In response to the recent financial crisis and the ensuing buildup in public indebtedness, an increasing number of advanced economies have created independent fiscal institutions (IFIs) to improve the quality of public finances and to strengthen the credibility of government policy. A review of Japan’s fiscal policymaking over the past decades suggests that Japan would greatly benefit from establishing an IFI in line with internationally accepted standards of good practice. Such an institution could help correct critical weaknesses in policymaking and anchor expectations, especially if introduced as part of a fiscal framework with a medium-term perspective.

Subject: Budget planning and preparation, Debt sustainability, Financial crises, Financial institutions, Fiscal policy, Multilateral development institutions, Public debt, Public financial management (PFM)

Keywords: A number of IFIs, Budget planning and preparation, Debt ratio, Europe, Fiscal policy stance, Government initiative, Government policy, IFI head, IFI mandate, IFI projection, IFI surveillance, Independent fiscal institutions, Japan’s fiscal policy, Multilateral development institutions, Public debt sustainability, Regime shift, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/156
Stock No:

WPIEA2016156
ISBN:

9781475522686
ISSN:

1018-5941

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