Japanification (Economics)
From Conservapedia
The flag of Japan
Japanification in economics is a term used to describe a country's deflationary stagnation, or the process of becoming similar to Japan's Lost Decade in the 1990s. While the initial response to the crisis was based on Keynesian principles, such as public works projects and fiscal policies, the effectiveness of these measures was hindered by the liquidity trap and credit crunch. The Bank of Japan's monetary policy, which included both raising and lowering interest rates, was also influenced by the desire to control inflation and asset prices, which ultimately contributed to the stagnation rather than stimulating growth.
Contents
Key characteristics of Japanification
- Low economic growth: Japan's economy has stagnated for decades, with weak growth rates combined with low labor productivity growth.
- Low interest rates
- Aging population that contributes to economic stagnation.
Journal articles
- Japanification, Sovereign Debt Crisis (pp.61-78). January 2011. DOI:10.1057/9780230307124_4
- "Japanization: is it spreading to the rest of the world?", Takatoshi Ito, 2018. Chapters, in: Dongchul Cho & Takatoshi Ito & Andrew Mason (ed.), Economic Stagnation in Japan, chapter 2, pages 17-55, Edward Elgar Publishing.
Book
- Confronting South Korea's Next Crisis: Rigidities, Polarization, and Fear of Japanification by Jaejoon Woo. Oxford University Press (October 31, 2022)
See also
External links
- “Japanification” and what it means for growth, inflation and financial markets, Capital Economics website
- The Japanification of the World?, Asian Society website
Podcast:
- What can Europe learn from Japanification?, Bruegel.com
