02065cas a2200265 a 4500 AALejournalIMF009226 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866018 1018-5941 BD-DhAAL BD-DhAAL Botman, Dennis. Strategies for Fiscal Consolidation in Japan / Dennis Botman, Papa N'Diaye, Hali Edison. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Japan's key fiscal challenge is to put public finances on a more sustainable footing. This paper investigates the macroeconomic implications of alternative fiscal strategies for Japan using the IMF's Global Fiscal Model. The results suggest that: (i) an adjustment package that achieves primary balance through lower social transfers and government spending and a higher VAT is the most viable option and has a smaller negative impact on growth than other fiscal measures; (ii) achieving primary balance is not sufficient to stabilize the net debt ratio; (iii) prefunding future aging costs provides greater long-term benefits compared with less front-loaded strategies; (iv) tax reform involving shifting from corporate taxation to consumption taxation could mitigate the short-term output losses associated with fiscal consolidation; and (v) the spillovers to the rest of the world from consolidation in Japan are positive in the medium term, but modest. Mode of access: Internet Edison, Hali. N'Diaye, Papa. IMF Working Papers; Working Paper ; No. 2007/037 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/037/001.2007.issue-037-en.xml IMF e-Library