The Case for an Independent Fiscal Institution in Japan

28 Pages Posted: 9 Dec 2016

See all articles by George Kopits

George Kopits

International Monetary Fund (IMF)

Date Written: August 2016


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.

Keywords: Fiscal policy, Japan, Public finance, Public debt, Debt sustainability, Fiscal transparency, Fiscal sustainability, Japan’;s fiscal policy; public debt sustainability; independent fiscal institutions.

JEL Classification: E61, E62, H11, H63

Suggested Citation

Kopits, George, The Case for an Independent Fiscal Institution in Japan (August 2016). IMF Working Paper No. 16/156, Available at SSRN:

George Kopits (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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