CHRONOLOGY

2016

Abenomics Mark II to counter MoF austerity and to assist achieving Kishi Objective Two 'Our own constitution'

2014

Consumption Tax raised to 8 pct under MoF's 'Arrow Four' fiscal austerity scheme a sharp brake on Abenomics

2001

Ex MoF Yanagisawa fails to postpone IMF FSAP and manage FSA warehousing of MoF's NPL roll forward

1995

MoF realises private + public sector NPLs continue to snowball FILP + Local Government Reform launched

1992

Auditors' reservations on banking NPLs reportedly indicated 'inappropriate' by MoF given roll forward scheme

1990

Credit Bubble 1986 - 1990 punctured by forceful Bundesbank style Mieno MoF activates NPL roll forward

1984

Ex MoF bureaucrat Sumita appointed BoJ Governor notably replaced by the BoJ puropa Mieno in late 1989

1927

Showa Financial Crisis banking regulation moves from BoJ to MoF and MoF's 'convoy system' launched

 

GLOSSARY

MoF fiscal austerity

fiscal consolidation via Flow not Stock

a rising Total Tax Burden squeezes both the economy and tax revenue

MoF name change

the Hashimoto Reform rationalised the ministries

MoF was given the modern name zaimusho Ministry of Financial Affairs cf MoJ

MoF okurasho

MoF's original name Great Storehouse Ministry

the fiscal function dates back to the Nara Period and the 8th century or earlier

MoF prestige

the Ministry of Ministries at the Kasumigaseki apex

the prosaic name was accepted given a scandal and popular criticism cf mofutan

MoF TFB 1942 - 1961

first locus of public pension fund management

pension insurance to fund the War effort and then FILP post War reconstruction

MoF zaimusho

MoF's new name the Ministry of Financial Affairs

the Japanese name change was accepted but no change made in the English

Abenomics Arrow IV

the key hidden MoF fiscal austerity schemes

Total Tax Burden to the German level by 2021 and the Swedish level by 2026

Convoy System

MoF regulation of the banks from 1927

with the slowest banks breaking even the fastest banks did extremely well

FILP Reform

MoF organised reform programme

an attempted rationalisation, refinancing, refocusing of much of the public sector

FILP Reform current status

MoF preservation of bureaucrat turf predominates

not Stock privatisation more a Flow Total Tax Burden push cf Abenomics Arrow IV

gososendan

MoF convoy system for the banks from 1927

for weak banks break even for strong banks a bonanza cf hozei shonin ginko

mofutan

MoF tanto person responsible for MoF liaison

appointed MoF liaison staff invited inevitable abuse and a scandal arose cf roran

shukeikyoku

Budget Bureau MoF

long term Total Tax Burden planning, short term budgeting etc means power

shuzeikyoku

Tax Bureau MoF

overall tax management with the NTA relegated to administration and collection

tax policy

MoF tax policy programme 1985 - 2020

1. ring fence Japan, 2. introduce Tax PIN, 3. raise tax burden cf My Number

Trust Fund Bureau

the prior MoF TFB okurasho shikin unyobu

the original source of FILP funding now the FILP Fund cf TFB, zaito kikin

zaito kaikaku

MoF organised programme of FILP Reform

an attempted rationalisation, refinancing, refocusing of much of the public sector

EFPC

Economic and Fiscal Policy Committee

keizaizaisei shimonkaigi a Cabinet Office committee largely under MoF control

Financial Planner

AFP/CFP international qualification FP domestic

AFP/CFP granted by private JAFP and FP by MoF related Kinzai cf kakaekomi

Financial Services Agency

FSA kinyucho

was set up to warehouse NPLs now being squeezed between BoJ and MoF

FRC

Financial Revitalisation Commission

now FSA was an early interim provision of NPL smokescreen cover for MoF

gaitameshin

Duties and Forex Consultative Council

MoF advisory committee responsible for deep long term policy cf Acu

keizaisangyosho keisansho

Ministry of Economy Trade and Industry METI

MITI and EPA loss of power via Hashimoto Reform etc a warning to MoF

kinyucho

Financial Services Agency

was set up to warehouse NPLs and is now squeezed between BoJ and MoF

Kinzai

Institute of Financial Affairs

MoF sponsored think tank producing financial perception survey data etc

METI keisansho

Ministry of Economy Trade and Industry

MITI/METI switch meant a major loss of power offering a strong warning to MoF

NPL roll forward

not booking credit losses as they accrue

MoF maintained pre tax profits so smoothing tax revenue cf hozei shonin ginko

NTA

National Tax Agency kokuzeicho

tax collection and the information under MoF political control cf kokuzeicho

overbanked

excessive number of banks

MoF post War protection of banking industry consequence cf gososendan

Pauschal

Swiss tax scheme offering efficiencies

flexibility deeply challenging and impossible for MoF Tax Bureau/NTA

Pension Reform 2006

Kasumigaseki Keidanren and Rengo revisit the fudge

behind the scenes a strong push for a Sweden III solution but a clear MoF 'No!'

Pension Reform 2010

DPJ's Akira Nagatsuma became MoHLW Minister 2009

Sweden III promoted with the ministry divided and he was sacked on a MoF 'No!'

roran

cherry orchid

nopan shabushabu restaurant for MoF staff + mofutan now closed cf mofutan

Small Government Act 2006

detailed provisions for the Takenaka Debt Action Plan

Abe Cabinet I MoF Minister interpreted the provisions to mean no action

smoking regulation (ii)

LDP concerned about tobacco farmers and tax revenues

restricted in unenclosed spaces and a battle between MoF and MoHLW

Takenaka Debt Action Plan

a sophisticated mix of Flow + Stock policy measures

Flow target accepted but Stock target refused by MoF under Abe Cabinet I

WPI premiums

Worker Pension Insurance was legislated in late 1941

supressing consumption they were managed in JGBs by MoF from 1942 cf TFB (ii)

zeni arahen

We're clean broke in Osaka dialect

MoF Minister Shiokawa graphically describing the Japanese fiscal situation

Back to Top