TY - JOUR
T1 - The effects of 'Gesell' (currency) taxes in promoting Japan's economic recovery
AU - Fukao, Mitsuhiro
N1 - Copyright:
Copyright 2006 Elsevier B.V., All rights reserved.
PY - 2005/11
Y1 - 2005/11
N2 - The traditional interest rate policy has lost its potency due to the zero-lower bound of nominal interest rates and the gradual accelerating deflation in Japan. Without stopping deflation, the Japanese government may face a rapid erosion of credit worthiness due to an uncontrolled budget deficit. In order to cope with this unusual situation, a non-traditional monetary policy measure is proposed. A negative nominal interest rate is needed to clear Japanese markets and can be achieved by levying a tax on all the government-guaranteed yen financial assets. This is a modified version of Gesell's stamp duty on currency for actual implementation in the contemporary context. The benefits and side effects of this tax for Japan are analyzed here.
AB - The traditional interest rate policy has lost its potency due to the zero-lower bound of nominal interest rates and the gradual accelerating deflation in Japan. Without stopping deflation, the Japanese government may face a rapid erosion of credit worthiness due to an uncontrolled budget deficit. In order to cope with this unusual situation, a non-traditional monetary policy measure is proposed. A negative nominal interest rate is needed to clear Japanese markets and can be achieved by levying a tax on all the government-guaranteed yen financial assets. This is a modified version of Gesell's stamp duty on currency for actual implementation in the contemporary context. The benefits and side effects of this tax for Japan are analyzed here.
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U2 - 10.1007/s10368-005-0032-2
DO - 10.1007/s10368-005-0032-2
M3 - Article
AN - SCOPUS:31044436667
VL - 2
SP - 173
EP - 188
JO - International Economics and Economic Policy
JF - International Economics and Economic Policy
SN - 0020-5230
IS - 2-3
ER -