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What is Fiscal Policy Fiscal Policy is the economic term which describes the actions of a government in setting the level of public expenditure and how that expenditure is funded A function of fiscal policy along with monetary policy is to regulate the level of economic activity the price level and the balance of payments Fiscal policy also determines the distribution of resources between the public sector and the private sector and influences the distribution of wealth Japans economy overview in 2005 In 2005 Japans economy kept improving although there was a constant deflation which was not a typical way of economic recovery But there are a couple of indicators in Japans economy which I believe that they are a good sign of economy What I found are as follows 1 The more investment in private sectors particularly in manufacturing business 2 There is more employment offers for newly graduate 3 More budget for educational project to NEET young people Not in Education Employment or Training This is a public sector project The more investment in private sectors particularly in manufacturing business Orange Production Green Inventory in Stock Light blue shadow Ressesion Chart from Nikkei Net for Manufacturer business as of February 2006 The above was the chart of manufacturers business flow Their business has been improving since 2003 Last December there was 14 increase in production comparing to the previous month and the production has been increasing five months in a row Manufacturers which make the devices for a flat panel display and LCDs or the parts for cellular phones have a great deal of contribution to Japans economy ULVAC which is one of leading manufacturer in this industry makes low-temperature Poly-STIFT LCDs OLED copper wire-Low k materials for semiconductors FRAMMRAM chemical compound semiconductors carbon nanotubes and other products has been increasing their revenues ULVAC has just announced that they will invest a new manufacturing facility in Taiwan
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