BoJ: consumption tax hike insufficient to balance budget
A Bank of Japan paper published in September shows that an annual growth rate of 3% combined with a new consumption tax rate of 15% over the next 20 years may be insufficient to turn consistent primary surpluses, unless prudent expenditure policies are implemented.
Concerns over Japan's ageing population and huge debt to output ratio have sparked a wave of research into how best to address the country's growing debt.
Selahattin Imrohoroglu and Nao Sudo, the paper's authors, use standard growth
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