America helped Japan restore its economy and society to build it into a better nation that it is today. Bibliography Perez, Louis G. The History of Japan. London: Greenwood Press, 1998. Reischauer, Edwin O. JAPAN, The Story of a Nation. New York: Alfred A. Knopf, 1970.
Cambridge, Massachusetts: Belknap Press of Harvard University Press, 1995. Tasker, Peter. The Japanese: A major exploration of Modern Japan. New York: Dutton, 1987. Thomas, Roy.
How can Japan mitigate the challenges of population ageing to maintain their standard of living? In recent years, Japan has been garnering attention for its ageing population. In an ageing population, the working population decreases, bringing about negative effect to the country's GDP growth (Oliver, 2012). It also causes economic concerns such as an increase in government expenditure such as pensions, healthcare and the lack of people in the labour market (Herrmann, 2012). This essay aims to explore the implications of an ageing population: savings rate, depletion of labour in the market; and how Japan aims to solve these issues with the use of immigration policies, providing pensions and other policies.
This era of high growth is very similar to that which the American economy experienced after WWII. A booming population and a new focus on industry were mostly responsible for the unprecedented growth in both countries. In the mid-1980's, Japan's central bank reduced prime interest rates in response to what was then considered a moderate slowing. This lowering wasn't enough to give the economy a chance at sustained growth, as it wasn't combined with robust reform. Japanese banks took advantage of the low rates, and began taking on massive debt.
America, which used to be the world's largest creditor nation, is now the world's largest debtor nation. Currently, Japan is the world's largest creditor nation and we are one of their biggest borrowers (Burnstein 77). Their strategies have helped Japanese industries take over in America. Moreover, Japan has taken control in the economic war with America. Japan is a major or dominant power in almost every world strategic industry including finance, communications, mass-transit, semi-conductors, motor vehicles, and popular-entertainment.
Massachusetts: D. C. Heath and Company, 1978. Ward, Robert E. ed. Political Development in Modern Japan. Princeton: Princeton University Press, 1968.
Tames, Richard. 1993. A Traveller’s History of Japan. New York, NY: Interlink Books.
Before 1973, Japan has an expansionary monetary policy, large scale public investment in railways and highways construction. Because of Japan’s energy dependency outside of its territory, the oil shocks in 1973-1974 has caused high inflation and has put Japan’s economy into recession or ‘stagnation’. Facing the economic stagnation, especially the inflation, Japan has been forced to tighten its monetary policy. Bank of Japan which is the monetary authority has been criticized to mishandling the high inflation and since then Bank of Japan began to target monetary growth to avoid inflation. Facing the difficulty of economic stagnation, Japan still managed to achieve slow economic growth.