Essay on Jap The Third Largest Economy

Essay on Jap The Third Largest Economy

Length: 1882 words (5.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Japan is the third largest economy in the world by nominal GDP and it used to be second. Japan was in a very rough state after World War II, but was able to become an economic power house once adopt western government and economic idea during the time. Keynesian was very popular during the time. Using government spending multiplayer and boost the economy was used throughout the world. However the Keynesian model have its limit as Keynes once said “in the long run we are all dead”. Than the “Lost Decade” happened after the speculative asset price bubble busted due to sharp rise in bank rate by Bank of Japan, which was used to try to counter speculation and inflation. The stock market crashed and firms failed, lots of firm where on life support by the government and not really making a profit. Banks had a lot of bad debts resulted from firms not be able to repay debt and was also only operational by the support of government. Business could not get loans because they were full of debt and banks did not want to get out loan in fear of bad debt. Expert thinks that the Japanese economy did not start to recover until the government stop keeping alive dead firms and banks. Since they are not making real profit and only eating up government revenue. People begin to cut down on their spending because they expected to earn less in the future. They would by gold or USD because they do not trust the banks will collapse and result in loss of money. As spending started to decrease so does the CPI ultimately results in deflation. Firms would stop borrowing because loan would be paid back with money that is worth more than it is now. And even if firms wanted to borrow, there are limited funds in the bank because people save their wealt...

... middle of paper ... to the economy is not staying in the economy. It also fail to mention that change in money supply is really only effective in short run. Once the price adjust in the long run and increase in money is neutralized. Since Japanese market is basically full saturation with little room for growth. Overshooting the inflation target might cause a hyperinflation in the economy. Another concern of mine is that Bank of Japan is continuing to engage in monetary stimulus without trying to change the mindset of households. There is lack of communication between governments. Japan’s population is aging and people only need so much houses and cars. The amount of people being born is less than the people dying, which results in demand is decreasing so supply will also decrease and this might not be a necessarily a bad thing. Forcing Growth might actually be bad for the population.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Canada Is The World 's Third Largest Economy With A Normal Gdp Close Essay

- By 2015, Canada is the world 's eleventh-largest economy with a normal GDP close to US $1.79 trillion. High-resources and trade-depended are the major factors in Canada’s economy. Canada had a good performance in stabilizing economy growth. Canada adopted a floating exchange rate for 42 out of the last 50 years. (6)During the past several years, the topic of Canadian Government is that if they should continue a floating exchange rate or retook a fixed exchange rate. Exchange rate presents a rate that one currency can be exchanged to another, and it can be divided into fixed exchange rate and floating exchange rate....   [tags: Foreign exchange market, Inflation]

Better Essays
1039 words (3 pages)

The United States Is The Largest Economy Of The World Essays

- The United States has the largest economy in the world. Our economy is the largest in terms of nominal GDP, as well as the second largest in purchasing power (Knoema). The economy is extraordinarily important to our lives. It encompasses the production and consumption of goods and services, trade, and jobs. As 2016 is an election year, the state of our country’s economy, now and in the future, has been a huge topic of discussion. This year the economy has been rather stable, with an increased growth of GDP, an unemployment rate of 4.9 percent and an inflation rate of 1.5 percent (Bureau)....   [tags: Unemployment, Inflation, Economics, United States]

Better Essays
1151 words (3.3 pages)

Essay about Geography: India the Fourth Largest Economy

- India, being the fourth largest economy is the world, with a population of 1.2 billion has shown some great growth and development in the recent years. Over the 67 years of independence, India has made a milestone agricultural revolution that has converted the nation from long-lasting reliance on agricultural imports to now the global agricultural powerhouse and exporter of the same. Other than agricultural developments, India has seen drastic developments in life expectancy, that has more than doubled, literacy rates that have increased fourfold and health conditions have upgraded for the better reducing the poverty and therefore helping in the emergence of a large middle class population....   [tags: population, agricultural revolution]

Better Essays
546 words (1.6 pages)

Berlin, Germany 's Third Largest City Essay

- Major cities Berlin, Germany 's capital, is one of the world 's most famous metropolises and most popular tourist attractions. The current population is nearly 3.4 million. Berlin is Germany 's leading industrial city, and the main industrial sectors are electronics, machinery manufacturing, chemicals, printing, textile and food processing. Berlin is an international transport hub. Hamburg, Germany 's largest port city, is Germany 's second largest city. Hamburg has a population of about 1.9 million....   [tags: Population, Demography, Germany]

Better Essays
952 words (2.7 pages)

United Kingdom Is The Third Largest Country Of The European Union Essay

- United Kingdom is the third largest country in the European Union, after Germany and France and the 22nd largest country in the world. The overall population density of UK is highest all over the world, i.e. 263 people per square kilometre because of the high population density. According to Country Economy (2015), the population of Britain in 1945 was 47 million, whereas in 2013, the population was 64,097,085. The overall population of Britain increased 73% in the last 70 years. Moreover, the female population, 32,511,754, in Britain is slightly higher than the male population, 31,585,331....   [tags: Family, Marriage, Household, Nuclear family]

Better Essays
1164 words (3.3 pages)

Human Trafficking Is The Third Largest Profit Illegal Business Essay

- Slavery, to many people, is thought of as a practice of the past or of “less civilized” countries. It is easy to say that slavery is someone else’s problem in someone else’s community. In reality, people are being bought and sold in almost every country every day. Human trafficking is a widespread business with countless victims and very limited awareness. Human trafficking accounts for approximately thirty-two billion dollars worth of business. Even though many people say human life is priceless, the average cost of a slave is ninety dollars (, n.d.)....   [tags: Slavery, Human trafficking, United States]

Better Essays
1393 words (4 pages)

Capital Of The World 's Fifth Largest Economy Essay

- As a city, London forms the capital of the world’s fifth largest economy (The World Bank, 2016). Dating from Roman times, it is described as one of only a handful of global centres, matched by cities such as New York and Tokyo. Greater London is home to 8.61 million people (London Datastore, 2016), with much of Britain’s administration and government located within its limits. Once the largest port in the world and a major manufacturing hub, finance has always played an import part in London’s economy due to Britain’s significance as a trading nation....   [tags: Investment, Foreign direct investment]

Better Essays
838 words (2.4 pages)

China 's First Largest And Fastest Growing Economy Essay

- Introduction The Chinese economy has sustained a remarkable growth in the past three decades. With nearly double-digit GDP growth rate per annum and a more than 20-fold increase in output (Meidan, 2015, p.2; Haltmaier, 2013, p.3; Yao, 2010, p.2), China has turned itself from one of the poorest countries into both the world’s second-largest and fastest-growing economy. This unprecedented economic performance has also enabled China to solve the poverty problem for over 3 million of its citizens, contributing most to the poverty-ending goal within the UN’s Millennium Development Goals (UNDP, 2013, Ding and Knight, 2008, p.2)....   [tags: Economic growth, Economics, Economic development]

Better Essays
1039 words (3 pages)

Wendy 's Of The World 's Third Largest Hamburger Companies That Is Quick Service

- Wendy’s is one of the world’s third largest hamburger companies that is quick service. There are over 6,500 company and franchise restaurants worldwide. Wendy’s mission is to stand for honest food, higher quality, fresh wholesome food, prepared when you order it, prepared by Wendy’s kind of people, do it Dave’s Way, we don’t cut corners. This company believes in fresh and non-frozen products so the customers are satisfied and now they bought from an honest restaurant. The foundation believes in long term success that include there core values in every production....   [tags: Ethics, Corporate social responsibility, Hamburger]

Better Essays
1855 words (5.3 pages)

The Largest of the Five Third Parties Essay

- The Largest of the Five Third Parties America currently has five nationally organized third parties: Reform, Libertarian, Green, Constitution (U.S. Taxpayers), and Natural Law. Each of these five parties has received 100,000 votes for at least one of its candidates in the past 20 years. No other currently existing third party in America has done so. Which of the five is the biggest and strongest is difficult to say. The Reform Party can claim dominance in a few recent elections. In the 1996 Presidential campaign, Ross Perot spent more money and received more votes (8.39%) than all other third party candidates combined....   [tags: Papers]

Free Essays
626 words (1.8 pages)