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Economic Stagnation in Japan

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Describe various aspects of why the Japanese economy had been in such a slump and the possibilities they could have explored to turn it around.

1. Why has the Japanese economy stagnated? What are the main reasons for this?
2. What would be required to get the economy moving again? What are some suggestions that could have been made to the Prime Minister that would have potentially helped improve Japan's economic situation?

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1. Among the reasons has to be the aging of the Japanese population. This is shrinking the population and depleting savings. Paying for the aged is a heavy price for any country. The world economic roller coaster, from the East to the worldwide economic decline has created problems for exports.

The leadership has been reluctant to agree to risks that would have improved foreign investment, falling prices and wages. Because the unemployment rate was high (5.5%), but not high by world standards. The also allowed deflation, a move ...

Solution Summary

The following posting answers questions about economic issues in Japan and provides a list of references for more ideas on the subject.