Japans Economic History in the Last Forty Years Essay

In the 1970s Japan had one of the world’s most-admired economies. Economists believed it would achieve the highest living standards and continue to develop the best technologies. At that time, Japan boosted he world’s second largest gross national product and eventually reached number one by the late 1980s However, everything changed in the early 1990s, and Japan entered what has been described as its first lost decade (Kuepper, n.d.). Economists and historians have studied the causes for Japan’s stagnation over the past twenty years, but there are significantly different opinions regarding the issue. Most agree that the huge asset ‘bubble’ was the cause for the initial stagnation, but they disagree as to the reasons for why this†¦show more content†¦This led to poor supervision and allowed bad debts to continue in the financial system (Posen, 1998). The lack of effective leadership led to serious policy mismanagements and aggravated the pr oblem. In 1997, the government issued a 2% consumption tax increase and the government also contracted spending on government projects. People became even more insecure and started saving more outside the private banking system (Posen, 1998). In this case, a government policy made the crisis even worse. Another example of policy mismanagement is he dependence on interest rate cuts from 1985 to 1987. The government did this to try to counter the deflationary impact of the yen appreciation relative to the dollar after the Plaza Accord The yen appreciation has become an enduring problem because it has restricted the success of certain policy gears that could have solved the economic problems (Okimoto, 2004). The second reason to account for the continuing stagnation is the lack of enough investments due to Japan’s age. As industrialized countries age, it becomes more difficult for them to create enough investment to boost their economy. Private and government fixed investment have experienced a growth slower than the GDP from 1991-2003, which registered -0.24% and -0.59% respectively, at the start and finish of this period. Taking a closer look at private investment, private housing experienced a sharp -2.48% decline. Government and privateShow MoreRelatedManga and Anime947 Words   |  4 Pages Manga and anime are popular for many people around the world and has been one of Japan’s most lucrative businesses. Manga and anime are misunderstood by some Americans who are unable to recognize the draw to them. To understand both styles, people need to know where they came from and what makes them a preferred interest of so many others. Japanese scroll paintings called the Animal Scrolls progressed into what today is known as manga and then into anime. 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