“It was not without justification that the OECD 1979 report on the impact of the newly industrialized countries referred to Japan as the forerunner of the NICs” (Dore, 1986). Over the ages, Japan has developed from a powerful economy in Asia, to the third biggest economy in the world after the United States at number one, and the People’s Republic of China at number two, Japan in fact was the second biggest economy in the world until the year 2010 when China’s Gross Domestic Product (GDP) got higher at $1.337 trillion, more than Japan’s $1.288 trillion GDP. Japan has over the years struggled to fight deflation, which has been a major problem to their economic growth. The growth of Japan’s economy will be looked at from four basic perspectives, the historical miracle of the bubble economy, the current deflationary and debt crises Japan is facing, the direction of the economy right from the economic miracle of the 1950s, and an insight to the future of Japan.
Japanese economic growth can be sectioned into three different historic eras namely, the Tokugawa (EDO) period, the Meiji period, and the post-war span. The Tokugawa period also recognized as the Edo period, lasted from 1603 - 1867, during this period, Japan under the rule of Emperor Iyesu Tokugawa became isolated from the rest of the world, as a result of that they enjoyed internal tranquility, political and economic stability, Japan enjoyed a stable economy because of the embargo the emperor embossed banning farmers from involving in other economic activities apart from the agricultural sector, this policy helped boost Japan’s national economy rapidly from the 1680s to the earliest parts of the 1700s. In 1867 the last Tokugawa shogunate was over thrown, less than a year later...
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...lumber of stagnation currently hunting them, the persistent escalation in devaluation combined with high administration debt and low cash spending from the people will make it harder for Japan to recover their economic attitude. The Japanese Prime Minister’s policy are basically aimed at restoring the economy of the country, pessimist economists believe a deflation as great as that of Japan will be difficult to reverse, from the look of new spending power policies from BOJ, the Japanese are expected to increase spending power, thereby increasing PPP which will give rise to inflation in the country. The future of Japan’s economy may yet still be regained as a powerful global economy. The future of the Japanese economy depends on the success of Shinzo Abe’s economic strategies, the rate of deflationary cut-down, and good economic policies.
228 Finance and Politics : Public Interest and Private Manipulation Does plaza accord lead to the result of lost decade in Japan? Fan Shuk Man 1111325 Tse Hung Kit 1113402 The lost decade refers to an economic downturn from around 1991-2001 in Japan. In this period Japan faced economic recession, serious unemployment rate and low GDP growth. Many scholars criticized that the Plaza Accord was the main contributor to Japan’s lost decade. We agree that Plaza Accord
The Economies of Japan and China Historically, successful civilizations have tended to have constant economic growth. The civilization of China was not successful in the nineteenth century because it had a declining economy, while the civilization of Japan was successful in the same time period because it had a economic growth. As a result China was unable to focus on other key areas such as medical and technological advancements, native culture, and military conquests. Japan’s growing economy enabled
1. A Brief Introduction Japan was a country that defied all odds and became a world power after losing a devastating war. In the 30 years after World War II the Japanese economy grew at an incredible rate, so much so in fact that Japan became the second largest economy in the world. Japan managed to successfully enact an economic system wholly different than that of the United States and because of it Japan experienced incredibly rapid growth over a period of roughly 30 years. During that period
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