Comments and Discussion

Asian Economic Papers 4:2 © 2006 The Earth Institute at Columbia University and the Massachusetts Institute of Technology Lok Sang Ho: I and myself in agreement with at least 90 percent of the conclusions of Professor Morinobu. In particular, I agree that Japan’s 11 ascal stimulation packages, at a total cost of ¥136 trillion, were misguided, that the situation cannot be sustained, and that ascal discipline may need institutional backup. I also agree that it is important to distinguish between structural and cyclical deacits and important to have any new expenditures ananced by new revenues. Finally, I agree that pension incomes should be treated no differently from other forms of income and should therefore be taxable.