2005 OECD Economic Surveys: Japan 2005

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OECD's 2005 Economic Survey of Japan analyses whether Japan can sustain its economic expansion. It carefully looks at Japan's fiscal problems and related to that, the relationship between different levels of governments. It also reviews the problem of Japan's shrinking working-age population. The special report examines how Japan gets the most out of public sector decentralisation.

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Key Economic Challenges Facing Japan

This chapter discusses the key challenges facing the Japanese economy. Although the current expansion is encouraging, there are a number of problems that will make it difficult to sustain growth over the medium term and ensure rising living standards. Five key challenges are addressed in this chapter: i) bringing an end to deflation, which has negative implications for growth, and further rehabilitating the banking sector to sustain the expansion; ii) ensuring fiscal sustainability in the face...

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