Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Abenomics seems to me like a straightforward and modern plan of economic revelation through monetary easing and some attempt at structural reform.

While it's still early, it looks like many of the predicted effects of this approach have begun to materialize: unemployment is lower, earnings are higher, and currency has deflated resulting in a rise in exports and improvements to corporate earnings. Capital has, unfortunately, accumulated on corporate balance sheets rather than re-entered the economy, but even this is a known effect of easing.

One thing I don't understand (aka my question) is: why did the Japanese government seek to raise consumption tax (VAT) during this process?

It would seem that the whole point of easing is to stimulate productive money circulation, and implementing a consumption tax when consumers are likely to suffer in the initial stages from currency devaluation seems very counterproductive to the cause. If the government actually needed the funds then surely there were other approaches available (borrowing or deferred taxation) which would have had less negative impact on the overall easing programme?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91339330

Have any Question?


Related Questions in Business Economics

1 under what circumstances is it advantageous for a company

1. Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain activities in a select few locations? Under what circumstances is it advantageous for a company com ...

Liquidity ratios burts tvs has current liabilities of 258

Liquidity Ratios Burt's TVs has current liabilities of $25.8 million. Cash makes up 48 percent of the current assets and accounts receivable makes up another 28 percent of current assets. Burt's current ratio = .93 times ...

I using the central limit theorem what is the distribution

I. Using the central limit theorem, what is the distribution of sample means when the population distribution is the following? PART (A) rectangular (a) positively skewed (b) uniformly distributed (c) normally distribute ...

Why are common stock and bond yields important what happens

Why are common stock and bond yields important? What happens if bond interests aren´t paid and what is the difference between common stock and bond investors?

A company making refrigerators strives for the internal

A company making refrigerators strives for the internal temperature to have a mean of 37.5 degrees with a standard deviation of 0.6 degrees, based on samples of 100. A sample of 100 refrigerators have an average temperat ...

A random sample of 19 college mens basketball games during

A random sample of 19 college? men's basketball games during the last season had an average attendance of 5,046 with a sample standard deviation of 1,753. a. Construct a 99?% confidence interval to estimate the average a ...

You are correct that the more financial leverage a business

You are correct that the more financial leverage a business has the more risky it becomes. Can you point out why this is true for a business?

Why does a government undertakes expansionary fiscal

Why does a government undertakes expansionary fiscal policy? What are the problems of undertaking expansionary fiscal policy? When is fiscal policy more appropriate than monetary policy?

In a population of phd students 50 have paid assistant

In a population of Ph.D students 50% have paid assistant ships. A random sample of n=200 students are chosen. What is the expected number of students who have paid assistant ships in this sample?

Please pick a health care phenomenaproblem and use philip

Please pick a health care phenomena/problem and use Philip Jacobs's descriptive, explanatory and evaluative model (in studying Economics) to analyze it. (Please use the real statistics that you search online and cite the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As