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Current economic conditions in japan
Current economic conditions in japan
The impact of the financial crisis on the global economy
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Something having no current or flow and often having an unpleasant smell defines the word stagnant. The Japanese economy has been stagnant for about two decades now. There are many reasons for this ‘unpleasant smell’. Firstly, the fiscal policy in Japan, the surplus in savings, its once economic bubble power and the policy management in Japan put an end to any flow that there once was. Secondly, the Global flow and structural impediments are a cause of the lack of current. The liberal Democratic Party and Vested Interest Groups and also the monetarist explanation come into play. Looking at these such topics closely give a better look and realization of Japans stagnant economy.
Firstly, in 1997, Japans fiscal policy was causing output in contract towards the government. Fiscal is the use of a government taxation to influence the economy. Throughout the preceding decade, tax cuts have done a lot more to stimulate demand than increasing in public spending, partially because public works were extensively considered as inefficient. This suggests that a decrease in public works complemented by an identical decrease in taxes would enhance GDP (Gross Domestic Product). A rise in taxes would reduce growth and hence tax revenues, thereby increasing the government's deficit even further. Households in Japan know that taxes will become, and are an issue in which they will rise, thus they tend to save more with reducing the things they buy which then neutralizes the fiscal stimulus. Japanese savers remain unwilling to move their money overseas in search of greater revenues. The government could proclaim that the rate of sales tax was to be changed instantaneously from 5% to zero for a limited period, after which it would increase progressiv...
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...ic holding pattern.
Bibliography
• "BestThinking / Articles / Economics / Behavioral Economics / Japan: The Ravages of a Stagnant Economy and Its Implications for the United States (Article)." BestThinking. Web. 22 Nov. 2011. .
• "Causes of Japan's Economic Stagnation - Shorenstein APARC." Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). Web. 22 Nov. 2011. .
• Http://www.economist.com/nod/133612. Web. .
• Ludwig Von Mises Institute. Web. 22 Nov. 2011. .
• Web. .
In Keynesianism, government uses fiscal policy, which is a list of policies that government spending and taxing can be used to improve the performance of an economy. The government produces stabilization by taxing and spending yearly plans. Taxing can occur when inflation is high, and lowering taxes tends to occur during a high percentage of unemployment. By lowering taxes, it increases disposable income or the amount of income that goes to financial responsibilities. When people have more money, they are able to spend more, which in return goes into jump starting the economy.
Culture is a collection of religion, traditions, and beliefs that are passed down from generation to generation. Culture is created and maintained through the repetition of stories and behavior. It is never definite because it is continuously being modified to match current trends, however, historical principles are still relevant. With respect to mental illness, culture is crucial to how people choose to deal with society and the methods used to diagnose and cope with mental illnesses. In Watters’ The Mega-Marketing Depression of Japan, he focuses on how Japan and other cultures define depression, but also displays how the influence of American treatments in eastern countries eventually becomes the international standards. Even though the
Jeffrey Kingston. Japan in Transformation, 1952 – 2000. Harlow: Pearson Education Limited, 2001. 230 pp.
In conclusion, the current macroeconomic situation in the United States is characterized by moderate growth because of better economic conditions that were brought by the events of 2013. The country has experienced moderate economic growth since the 2008 global recession but has shown real signs of momentum. While the country is not concerned about recession or inflation, the rate of unemployment is still a major challenge despite improved consumer and business confidence. As a result, the Federal Open Market Committee or Federal Reserve System needs to adopt fiscal and monetary policy initiatives that help address the unemployment issue and promote high economic growth.
Moreover, the context in which this book was written demonstrates that Japan is going through the financial affluence as well as the greatest boom since it is during the postwar period, much of the financial affluence had been caused by the consumerism in Japan. The author seem to be biased on this theme, despite the benefits consumerism has had on Japan, Yoshimoto goes ahead to give it a negative
" The US Economy. N.p., 31 Oct. 2012. Web. The Web. The Web.
Everyone has their own political leaning and that leaning comes from one’s opinion about the Government. Peoples’ opinions are formed by what the parties say they will and will not do, the amounts they want spend and what they want to save. In macroeconomic terms, what the government spends is known as fiscal policy. Fiscal policy is the use of taxation and government spending for the purposes of stimulating or slowing down growth in an economy. Fiscal policy can be used for expansionary reasons, which is aimed at growing the economy and increasing employment, or contractionary which is intended to slow the growth of an economy. Expansionary fiscal policy features increased government spending and decreases in the tax rates as where contractionary policy focuses on lowering government spending and increasing tax rates. It must be understood that fiscal policy is meant to help the economy, although some negative results may arise.
Japan needs to have more babies. The population of Japan is declining, and the birth rate is a base problem. People just aren’t having enough babies anymore. This will be problematic, as Tomm says “The consequences have had negative effects as fertility rate continues to decline and life expectancy continues to increase”. After the birth rate has been declining for the past four decades, the old far outnumber the young at a ratio of nearly 2:1(“Japan Age structure”). There aren’t enough workers to pay into social security. Social problems like traditional gender roles and stereotypes negatively impact the growth of the population. Because of their work-centric lifestyles, social problems, and child related expenses, Japan’s birth rate is severely declining.
Stockwin, J. A. Chapter 7: Who Runs Japan? In Governing Japan: Divided Politics in a Resurgent Economy (4th ed., pp. 46-72). London, The United Kingdom: Blackwell.
After analyzing the data and the theory, we have provided our conclusion weather tax cut is better for the stimulation of growth or Government spending is? This report explains the big macroeconomic debates of the present times. It seeks to explore the debate within fiscal policy itself between tax cuts and government spending. We have tried to explain the argument through some theories and through some data collected from Indian econ...
...high power status, Japan had to have a self-reliant industrial common ground and be able to move all human and material resources (S,195). Through the Shogun Revolution of 1868, the abolition of Feudalism in 1871, the activation of the national army in 1873, and the assembly of parliament in 1889, the political system of Japan became westernized (Q,3). Local Labor and commercial assistance from the United States and Europe allowed Japan’s industry to bloom into a developed, modern, industrial nation (Q,3). As a consequence production surplus, and food shortage followed (Q,3). Because of how much it relied on aid of western powers, Japan’s strategic position became especially weak. In an attempt to break off slightly from the aid of the west Japanese leaders believed that it would be essential for Japan to expand beyond its borders to obtain necessary raw materials.
Whereas Milton Friedman argued that consumption is related to permanent rather than current income. He was therefore more sceptical about he usefulness of a tax change for stabilisation purposes than one who believes that consumption depends on current disposable income. Policy makers usually use Fiscal policy to alter the level, timing or composition of government expenditure and/or the level, timing or structure of tax payments. And they use Monetary policy to alter the supply of money and/or credit and also to alter interest rates. But some policies are not always successful; a good example was the decision to use monetary policy to solve the liquidity trap.
O'Bryan, Scott. 2009. Growth Idea : Purpose and Prosperity in Postwar Japan. University of Hawaii Press, 2009. eBook Collection (EBSCOhost), EBSCOhost (accessed December 4, 2011).
The current state of the economy in the United States has been slow in recent months. While the economy is not currently in a recession, we may eventually fall victim to the first recession we’ve had in nearly ten years. The economy in general is showing growth, just not much. It will be difficult to predict what exactly will happen to the US economy in the future. Many economists do not agree on what will become of the economy. Some feel that we will begin a recession over the next year, and some feel that there is significant policy implementation that will allow us to dodge a recession and regain our economic strength. There are many factors that make up the US economy. The means in which I will discuss the overall growth and current status of the economy is by analyzing the Gross Domestic Product, and discuss the factors that cause it to rise and fall.
Japan’s rising yen and the decline of the US dollar, East Asia Forum, 2011. Available at: