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Today's Unusual Fiscal Policy: Japan

Japan is simultaneously implementing both expansionary and contractionary fiscal policy.  According to The Wall Street Journal, the massive government debt has necessitated an increase in the national sales tax:

Prime Minister Shinzo Abe took a long-awaited decision to raise Japan's sales tax by 3 percentage points (LC: up to 8% total), placing the need to cut the nation's towering debt ahead of any risk to recent economic growth...

In order to offset this increase in taxes, Abe also promised an additional fiscal stimulus:

The stimulus measures total around ¥5 trillion ($51 billion), including cash-handouts to low-income families, Mr. Abe said. On top of that, there will be tax breaks valued at ¥1 trillion for companies making capital investments and wage increases.

Both of these policies are focused firmly on aggregate demand.