This book examines how Japan should cope with fiscal challenges, as demands on the budget from an ageing society have necessitated the reigning in of public debt and the revamp of the pension and healthcare systems. It combines insights from academic research with the views of policymakers to distil key issues that need to inform public debate.

HENRY J. AARON Bruce and Virginia MacLaury Senior Fellow, The Brookings Institution, USASHUN-ICHIRO BESSHO Policy Research Institute, Ministry of Finance, JapanROBERT DEKLE Professor, Department of Economics, University of Southern California, USADANIEL CITRIN Deputy Director, Asia and Pacific Department, International Monetary Fund, USAMASAYOSHI HAYASHI Principal Economist, Policy Research Institute, Ministry of Finance, JapanPETER S. HELLER Deputy Director, Fiscal Affairs Department, International Monetary Fund, USAR. GLENN HUBBARD Dean, Dean and Russell L. Carson Professor of Finance and Economics, Graduate School of Business and Professor of Economics, Columbia University, USATOSHIHIRO IHORI Professor, Faculty of Economics, University of Tokyo, JapanYUTAKI IMAI WIN Advisory Group, USAHIROMITSU ISHI Professor, Chuo University, JapanTAKATOSHI ITO Professor, Graduate School of Business and Graduate School of Public Policy, University of Tokyo, JapanYASUSHI IWAMOTO Professor, Department of Economics, University of Tokyo, JapanRYUTA RAY KATO Graduate School of International Relations, International University of Japan, JapanMASUMI KAWADE Faculty of Economics, Niigata University, JapanLAURENCE J. KOTLIKOFF Professor of Economics, Boston University, USAKENNETH N. KUTTNER Danforth-Lewis Professor of Economics, Economics Department, Oberlin College, USAHOWARD OXLEY Senior Economist, Health Division, Employment and Social Affairs Directorate, OECD, FranceEIJI TAJIKA Dean, Graduate School of International and Public Policy, Professor, Graduate School of Economics, Hitotsubashi University, JapanTOSHIKI TOMITA Professor, Faculty of Law, Chuo University, JapanISAMU UEDA Senior Vice Minister of Finance, Ministry of Finance, JapanDAVID E. WEINSTEIN Professor, Department of Economics, Columbia University, USAYUJI YUI Dean, Department of Economics, Seijo University, JapanNAOYUKI YOSHINO Professor of Economics, Keio University, Japan

Overview of the Japanese Deficit Question; R.G.Hubbard& T.Ito Comments on 'Overview of the Japanese Deficit Question'; D.E.Weinstein Comments on 'Overview of the Japanese Deficit Question'; N.Yoshino Public Debt and Economic Growth in an Ageing Japan; T.Ihori, R.R.Kato, M.Kawade& S.Bessho Comments on 'Public Debt and Economic Growth in an Ageing Japan; R.Dekle Comments on 'Public Debt and Economic Growth in an Ageing Japan; T.Tomita Medium-term Strategies for Long-term Goals; H.J.Aaron Comments on 'Medium-term Strategies for Long-term Goals'; H.Ishi Comments on 'Medium-term Strategies for Long-term Goals'; K.N.Kuttner Fiscal Decentralization in Japan: Does It Harden the Budgets of Local Governments? E.Tajika& Y.Yui Comments on 'Fiscal Decentralization in Japan: Does It Harden the Budgets of Local Governments?'; D.Citrin Comments on 'Fiscal Decentralization in Japan: Does It Harden the Budgets of Local Governments?'; M.Hayashi Managing Public Costs in the Japanese Health and Nursing Care Sector; Y.Imai& H.Oxley Managing Social Costs: Challenges in Creating a Cohesive System for Health Care, Pensions, and the Needs of the Elderly; K.Kaizuka Avoiding a Fiscal/Demographic/Economic Debacle in Japan; L.J.Kotlikoff Comments on 'Managing Public Costs in the Japanese Health and Nursing Care Sector', 'Managing Social Costs: Challenges in Creating a Cohesive System for Health Care, Pensions, and the Needs of the Elderly' and 'Avoiding a Fiscal/Demographic/Economic Debacle in Japan'; P.S.Heller Comments on 'Managing Public Costs in the Japanese Health and Nursing Care Sector', 'Managing Social Costs: Challenges in Creating a Cohesive System for Health Care, Pensions, and the Needs of the Elderly' and 'Avoiding a Fiscal/Demographic/Economic Debacle in Japan'; Y.Iwamoto Concluding Remarks; A.O.Krueger