Assessing Japan's fiscal stance

Only a fraction of the ¥28 trillion fiscal stimulus passed by the Cabinet on Tuesday constitutes fresh public spending. What’s more, budgeted spending has been a poor guide to actual changes in public demand. Projections by the IMF have done a much better job, though the recent set from April now looks somewhat outdated. Nonetheless, it seems more likely that spending will be little changed in the current year rather than surge as some of the headlines have suggested.