Urgent Policy Proposals
Priority should be given to fighting the virus,not stimulating the economy
-- Direct spending of 11tn yen to protect livelihoods, businesses
-- Action plans based on prolonged infection are essential
2020/04/02
The U.S., Europe, and Japan may be on the verge of a “coronavirus depression,” with the rapid spread of the new coronavirus from China paralyzing economic activities. If the pandemic does not dissipate until the end of this year, Japan’s economy could experience a decline of about 4% in fiscal 2020. The growth rate in the medium-to-long term may also decline if global supply chains are reconfigured and the number of foreign visitors to Japan fails to reach the pre-crisis level. The priority should be placed on the prevention of the spread of the disease even if that means that short-term economic growth will be sacrificed. The government should spend about 10 trillion yen to protect people’s livelihood and support businesses.
(*) Kazumasa Iwata, the President of Japan Center for Economic Research, supervised this policy proposal in collaboration with the following economists: Shin-ichi Nishioka, Kengo Tahara, Ikuko Samikawa,Takashi Miyazaki, Akira Tanaka,Yuto Kajita, Tomoki Matuo, Sumio Saruyama, and Takashi Onodera.
- 2021/02/26
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The Impact of the State of Emergency on the Japanese Economy
State of Emergency should be extended until Stage II
-- Consumption will set to recover from spring 2021
-- Large benefit to the medical care system and the economy - 2020/04/02
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Urgent Policy Proposals
Priority should be given to fighting the virus,not stimulating the economy
-- Direct spending of 11tn yen to protect livelihoods, businesses
-- Action plans based on prolonged infection are essential
