Dean Yoshino at a recent seminar at the Policy Alternatives Research Institute (PARI), University of Tokyo, indicated that Japan’s current malaise emanates from a vertical IS curve. He went on to add that a gradual increase in the consumption tax rate would be a solution to this problem. He also proposed that if elderly Japanese, including retirees, work based on a productivity wage arrangement then the per capita tax rate will decline and consumption will increase. He went on to add that the Japanese rate of return on assets is the lowest among OECD countries. However, in order to maintain a suitable lifestyle in an aging society, the rate of return on investments has to be high. Dean Yoshino stressed that Japan will lose money if pension funds are invested in US infrastructure projects due to poor rates of return. Therefore spillover tax revenues from US infrastructure investments need to be returned to infrastructure investors so as to increase the rate of return, and make such investments more attractive to Japanese institutional investors.Stay up to date Subscribe to our newsletter and get the latest issues, news, events, jobs and data in your e-mail inbox.