The effects of 'Gesell' (currency) taxes in promoting Japan's economic recovery

Mitsuhiro Fukao

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)173-188
Number of pages16
JournalInternational Economics and Economic Policy
Volume2
Issue number2-3
DOIs
Publication statusPublished - 2005 Nov

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint Dive into the research topics of 'The effects of 'Gesell' (currency) taxes in promoting Japan's economic recovery'. Together they form a unique fingerprint.

  • Cite this