Understanding Japan's Fiscal Policy and Government Activism

The video discusses the need for policy changes in Japan, focusing on structural reforms and fiscal policy. It highlights the importance of increasing government expenditure and compares Japan's fiscal policy with that of the US and China. The role of government activism in financial stability is examined, emphasizing the need for careful asset assessment and crisis management. The video concludes by warning against over-activism and protectionism.

What is the primary focus of Japan's structural reforms?

• Increasing government size

• Enhancing military spending

• Reducing taxes

• Promoting smaller government

Why does Japan need to expand its government expenditure?

• To match the fiscal policies of the US and China

• To support structural reforms

• To reduce inflation

• To decrease unemployment

How does Japan's fiscal size compare to that of the United States?

• It is larger

• It is about the same

• It is double

• It is less than half

What is a key component of government activism during a confidence crisis?

• Reducing taxes

• Capital injection into financial sectors

• Decreasing public spending

• Increasing exports

Why is Japan's financial sector considered stable?

• Due to high foreign investments

• Because of sound balance sheets

• Owing to low interest rates

• Because of government bailouts

What should governments be cautious about when assessing bank assets?

• Overestimating asset values

• Underestimating liabilities

• Ignoring foreign investments

• Focusing only on domestic banks

What lesson can other countries learn from Japan's past financial crisis?

• To reduce government size

• To accurately assess bank assets

• To avoid capital injections

• To increase taxes

What is a potential risk of over-activism in government policies?

• Increased foreign investment

• Lower inflation

• Protectionism

• Higher GDP growth

What is the symbol of government over-activism?

• Military expansion

• Increased exports

• Protectionism

• Tax cuts

Why is it important to avoid protectionism in government policies?

• To increase domestic production

• To maintain international trade relations

• To reduce government spending

• To enhance national security