The Policy Research Institute (PRI) was first established as the Institute of Fiscal and Monetary Policy in May 1985 and was renamed in 2000. As a think tank of MOF, the PRI not only conducts research and studies on finance and economics but also engages in exchanges with overseas research institutions, provides intellectual support and technical assistance to developing countries, conducts statistical surveys on business activities by corporations, compiles History of Fiscal and Monetary Policies of Japan, and provides training to MOF officials.
The Japanese economy has recovered from the downturn caused by the COVID-19 pandemic, and we now have a thousand-to-one chance to completely break free from deflation and realize a growth-oriented economy. Going forward, we need to lead the current wage increase to structural wage increases and to stimulate positive investment through public-private partnerships to create a “virtuous cycle of growth and distribution,” thereby expanding the scale of the economy and taking even greater steps forward to achieve both economic revitalization and fiscal consolidation. In carrying out economic and fiscal policies, it is important to change the quality of resource allocation by shifting the focus from responding to a crisis to boosting the growth potential, while dealing with increases in prices, wages, and interest rates. At the same time, in the changing financial environment, we are facing concerns about rising expenses for interest payments due to the return to a "world with high interest rates" and the need to prepare for global economic crises, large-scale disasters, and infectious diseases that require large-scale policy measures. In such a situation, it is necessary to achieve a sustainable fiscal structure that can achieve a stable reduction of the debt-to-GDP ratio in normal times to ensure market confidence in public finance. In order to realize the above economic and fiscal management, it is essential to conduct research and studies from a broad perspective on economic conditions at home and abroad and policy measures.
（Research and studies）
The PRI conducts research and studies on the medium and long-term issues of public finance and the economy and issues related to financial and capital markets, as well as international economic situations, including surveys on individual countries, reflecting the interests of relevant policymakers. The results of the research and studies are published in the Financial Review, the PRI’s flagship periodical journal, as well as in other study group reports, various papers, including discussion papers, and on the PRI website. In addition, as part of the PRI’s efforts to utilize administrative data, we are also engaged in research utilizing customs’ import and export declaration data.
（Intellectual support and research exchanges）
The PRI proactively provides intellectual support to developing countries and engages in research exchanges with foreign research institutions.
As specific initiatives for intellectual support, the PRI provides technical cooperation to Uzbekistan, Cambodia, and other developing countries to support their efforts in developing human resources, such as administrative officials and employees of government-affiliated financial institutions. We also conduct activities, such as accepting trainees for seminars to provide knowledge and experience on Japan’s finances and economy to foreign countries, including Southeast and Central Asian countries.
In addition, the PRI promotes research exchange by holding workshops and other events with research institutes in Korea, China, India, and Vietnam, and accepts government officials and researchers from developing countries as visiting or practical researchers. The PRI also holds study meetings, inviting experts on China, India, and ASEAN.
（Statistical surveys）
The PRI conducts a series of two statistical surveys on a regular basis: one on the Financial Statements Statistics of Corporations, which aims to capture the current status of the business activities of approximately 33,000 corporations; and the other, the Business Outlook Survey, which aims to quantify the business sentiment and outlook across approximately 14,400 corporations. These government statistics attract the attention of the press, market participants, experts, etc., and when they are released, they attract a large number of hits to the PRI website.
（Compilation of History of Fiscal and Monetary Policies of Japan）
The PRI has published History of Fiscal and Monetary Policies of Japan, which compiles the administrative records of the Ministry of Finance as a historical reference. This is intended to aid the current and future financial policy planning and administration as well as academic research. To date, we have published 117 volumes in seven series, which began with the Meiji History of Fiscal and Monetary Policies of Japan, continuing up to the Heisei History of Fiscal and Monetary Policies of Japan: FY1989 through FY2000. In FY2020, we started to compile the series for the latter half of the Heisei era (i.e., FY2001 through FY2018).
（Training of MOF officials）
Mobilizing our accumulated knowledge based on research activities, the PRI offers comprehensive training courses to help MOF officials acquire specialized knowledge and skills. In FY2023, 392 training courses were provided to 14,372 participating officials. In terms of training management, the PRI is working to enhance and strengthen the content in response to changes in public administration, as well as to implement online and on-demand training programs to provide more opportunities to participate in training programs.
The PRI is proud of its diverse staff members, including government officials and publicly recruited researchers with specialized knowledge. To add value further, the PRI conducts joint research with universities and private research institutions. With intellectual expertise accumulated through the various activities mentioned above, the PRI, in cooperation with each department, will proactively continue and strengthen its research and studies, international research exchange, and assistance for capacity building and human resource development. We appreciate your continued support of the PRI.
July 2024
KOMIYA Yoshiyuki,
President,
Policy Research Institute,
Ministry of Finance, Japan
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