Scandinavian Working Papers in Economics

EIJS Working Paper Series,
Stockholm School of Economics, The European Institute of Japanese Studies

No 163: ECONOMIC GROWTH AND REFORM: LESSONS FROM THE UNITED STATES AND JAPAN

R. Glenn Hubbard
Additional contact information
R. Glenn Hubbard: U. S. Council of Economic Advisers

Abstract: The Japanese economy has had four recessions since 1990. Also the U.S. economy has been in difficulties during more recent years but there are clear signs of an economic recovery. While Japan’s difficulties are not the mirror image of those in the United States, it is interesting to note that the same mix of policy responses might support recovery in Japan: aggressive monetary action to address deflationary pressures, fiscal policy oriented around controlling spending and long-run tax forms that also provide near-term stimulus, and structural reforms to improve capital market functioning. This policy mix to help revive the Japanese economy will involve politically difficult decisions. In this context, the role of the United States should be to acknowledge the steps that have already been taken in Japan and call attention to those steps that remain to be carried out.

Keywords: The Japanese economy; economic crisis; macroeconomics

JEL-codes: E10; E20; E30; P52

14 pages, First version: September 1, 2002. Revised: January 12, 2004. Earlier revisions: January 12, 2004.

Full text files

eijswp0163.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Nanhee Lee ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:31:49.