JAPAN’S ECONOMY

25 October 2012by

Sigrid Brevik Wangsness

I. Historical Perspectives Developments in Japan’s economy

from 1980 to 2010 :

The 1980s: “the golden era” = boom

The 1990s and the 2000s: Two decades of sluggish

growth, recessions and uneven recoveries = economic stagnation/slump

Japan’s Economy in the 1990s

1990: The stock market crashed

Collapse of the bubble economy:The property market crashed, huge

public debts, bankruptcies, government budget deficits, corruption scandals

Deflation

Japan’s Economy in the 1990s

What was at the core of Japan’s economic crisis?

What is meant by “bad loans”?

How did the Japanese government try to help the banks?

Japan’s Economy in the 1990s and 2000s

“The Japanese model” (Discuss its weaknesses!)

Other problems of the Japanese economy in the late 1990s

Reforms implemented by the government in Japan

Why did the recovery not arrive earlier?

Japan’s Economy in the 1990s and 2000s

Many analysts blame the Japanese government for failing to boost demand but rather implementing a stop-go economic policy. Explain. Mistakes in monetary policy?

Other analysts refer to certain aspects of the Japanese corporate culture as main reasons for the economic problems of the 1990s/ 2000s. Which?

Japan’s Economy in the 1990s and 2000s

Explain the following statement (1998), and indicate why it might be true:

”Japan was once feared for its economic might. Today it is feared for its economic weakness”.

II. The Present Situation

The present state of the Japanese economy through economic indicators:

GDP: 3.2% (Q2) (Prediction for 2012: +2.2%)

Inflation: -0.5 (Aug.) (2012: +0.1)

Unemployment rate: 4.2% (Aug.)

The Present Situation Current-account balance:

+$86.2bn (latest 12 mos.) +1.4% of GDP 2012 Budget balance:

-9.2% of GDP 2012 What is Japan’s ratio of debt to GDP? Why are Japanese government bonds

still popular? (Compendium, p. 70)

The Present Situation

Where is Japan ranked on the list of the world’s top ten largest economies in 2012?

How dependent is Japan’s economy on China? Are they partners or rivals?

(Compendium, pp. 72-75)

How dependent is Japan’s economy on the USA?

The Present Situation When and what was “Japan’s triple

disaster”? (Tsunami is a Japanese word in global use. Why do you think?)

On the whole, how did the Japanese people react to the disaster?

Who were the culprits and who were the heroes in this tragedy?

III. Prospects for the Future

Why did Yoshihiko Noda, Japan’s prime minister, finally agree to raise the sales tax in Japan?

Explain why this tax is so controversial (“contentious”) - what are the arguments in favour - and the arguments against?

Explain the title of the article: “A pound of flesh”. (Compendium, pp. 69-71)

IV. The Japanese Business Culture

Outline the main aspects of the Japanese business culture as Richard D. Lewis portrays it.

(Compendium, pp. 94-96, 114, 121-122, 127- 128, 137, 161, 162-165)