Japan Economics

Japan Economics Weekly
05 November, 2012

The effect of the consumption tax hike on growth

The proposed increase in the consumption tax in April 2014 and again in October 2015 can be expected to affect the economy through two routes. First, it will generate a front-loaded increase in demand followed by a decline after the tax rises. Second, rising prices will depress real incomes. This Weekly looks at these effects in more detail....

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