What is the Japanese general trend of public spending? Has Japanese fiscal policy been expansionary or...

What is the Japanese general trend of public spending? Has Japanese fiscal policy been expansionary or contractionary? Furthermore, has the Japanese government recently experienced a budget surplus or deficit? Is the government highly indebted? In the current macroeconomic situation, recommend ONE OTHER (other than fiscal and monetary policy settings) policy action that the Japanese government should take. Be specific about your recommended policy action. What do you think about the effectiveness of your policy suggestion? Why?

Expert Solution

Japaneses General Trend Of Public Spending-

govenment public spending refers to public expenditure on goods and services. according to current trend of public spending of japan , govt. continues to run a budget deficit.;

(according to 2017-18 govt. budget)

Japan's fiscal policy has been contractionary. 2013 was the year in which govt.'s fiscal policy was expansionary.

Japan's Govenment budget is deficit in 2018. From last 8 years(2010-18), govt. budget was deficit. in 2018 it was 3.80% of the country's Gross Domestic Product.

Yes, govt highly indebted. but the figure is showing that the debt was started to dip from US $ 11.06 trillion to US$ 9.94 trillion by the end of december 2017.

According to me, there is no any policy other than fiscal and monetary policy that the japanese govt. should take. Govt. can take a combination of fiscal and monetary policy. but at this movement govt is not in position to control its situation.

one best way to control deficit is economic growth which is possible by promoted production and exports. so govt. can handle situation by promoted production by providing some i ncentive to private investor( that is a part of fiscal and monetary policy.

Rahul Sunny answered 2 years ago

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