Zero-rate bonds must be studied but ‘invoice system’ shows
promise  by Teruhiko Mano  F inance ministers and central
bankers from the Group of Seven top economies wrapped up two
days of talks last month with the recognition that the global
economy will continue to deteriorate this year, and urged
governments to act in concert to stabilize their finance sectors
and inject stimulus to boost demand.  The joint statement also
urged all economies to avoid engaging in protectionism.  Japan
has little room to take monetary steps because it has already
lowered interest rates to nearly zero. Expectations for fiscal
stimulus therefore lie with the government.  But the question
is: How do you finance such grandiose public expenditures?
Japan’s outstanding public debt has topped ¥1.8 quadrillion and
the rapid decline in corporate earnings is sharply reducing tax
revenue. In municipalities, the situation is becoming
particularly serious in places heavily reliant on export-
oriented companies. The city of Toyota, Aichi Pre