Japanese Prime Minister Shinzo Abe took office after a really loud. Without hesitation, the militaristic past behavior has shown such territorial disputes, collective events jawigwon But he had a history of heart hurting neighbors distortion shrine. Why had been changed so chill Japan? I want it not the biggest factor that caused the confidence to Abe nomikseu. Seems to expect liquidation lost 20 years and stand back. Can nomikseu is expected to succeed Abe? It consists of three arrows nomikseu is Abe. The first is expanding spending. 10 trillion yen already fired and not trivial to scale the infrastructure as declaring input (SOC) for the next 10 years 200 trillion yen in 2013 seconds. A strategy to increase the value of the yen dropped competitiveness through the second quantitative easing. Thanks to the dollar was at 70 yen since late last year to early 2011 endae 100 endae depreciated rapidly. Was also set up to 2% inflation target further Bank of Japan. The encouraging results so far, the second arrow is. Becomes more profitable export business mainly to the stock price soaring warmth turned the economy grow jobs. Why are former prime minister did not enforce good policy to do so? It is because the hiding dock (毒) is of such a policy. Is more than 230% of GDP, the national debt is now Japan. Are 10000000000000000 won this won more than ¥ 1,100,000,000,000,000. Decreased 30% over the past 20 years, while the government Concern increased tax revenues continue. There are so many lasting a national debt is the peacetime history of the country. The reason for this is that Japan can survive and withstand the costs and interest rates are low, it is such a powerful financial company by assets, is being digested in 92% of domestic government bonds. But if interest rates rose by 2% inflation problem varies. I increased interest rates rise 1% amounts to 7-8% of the general account expenditure budget burden. The Treasury has already issued will receive immediate end eopgetjiman impact over time due yeoseo average about 8 years. Now 43% of revenues in the Treasury which shall be procured by government bonds depends more than half of the revenue olrado here only 1% interest. It is not possible at all sustainable. Once again the national debt will continue to grow in Japan face a limit digestion. Already more than 90% of household net worth than the Treasury rate. Since the end of last year, on and off the red light on the digestive capacity while domestic current account surplus line Mob. Raise interest rates in the future the United States, the European economy is recovering, and when the progress of RMB internationalization is off Japanese government bonds more attractive interest rates to rise. Falling asset values by financial institutions of the financial system becomes unstable even the threat of rising interest rates on sovereign debt is transferred. To avoid this situation, we must succeed Abe nomikseu is activated, increasing tax revenues to match the first line is the national debt. Why firms raise wages to increase employment urging that Abe is here. The class is challenging but also for promotion. The yen depreciated harder to domestic firms export company sees the benefit. It is already difficult to tax hikes also expanding domestic consumption in April. In June, the arrows fired third Abe. Are one such labor, health and agriculture sector cuts and tax reform is great content. But it is more urgent than reducing the national debt as soon as possible. Now is not the time to write generous in developing countries and neighboring countries a competitive weapon. Is common to reduce through a painful restructuring and tax increases to reduce the national debt over the yen has depreciated, the stimulus is nomikseu Ave. Proactively to reduce sovereign debt if the economy turns out that Japan, the point of nomikseu listening to Abe rising government bond yields have more land or increase. If the latter is to be realized in Japan realize that bankruptcy is not simply end with the failure of Abe nomikseu. - Visiting Professor, Graduate School gimdaegi KDI Policy] 비즈니스용 Google 번역:번역사 도구웹사이트 번역기해외 시장 정보 즉석 번역 사용 안함Google 번역 정보모바일커뮤니티개인정보
Posted on: Sun, 17 Aug 2014 09:38:14 +0000