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The Japanese Economy

Beginning of essay

“Once upon a time there was a densely populated island nation, which, despite its lack of natural resources, had managed through hard work and ingenuity to build itself into one of the world’s major industrial powers. But there came a time when the magic stopped working. A brief, overheated boom ....

Middle of essay

....on increased by 2%. Foreign capital investments rose at unparalleled rates. However, since the early 1990's, Japan's economy has been on a downward spiral. Real GDP growth declined to 0.3% in 1993, fell to 0% in 1997 (Posen, 1998a, Table 1.1), fell further to –2.4% in 1998 (Bank of Japan, Sep 1998), and is now at –3.5% (Rosenberger, 1999). The Japanese economy is operating at 8% below production capacity. Industrial production has fallen 7%. There’s a huge shortfall between actual GDP (-3.5....
Number of words: 2288 Approximate pages: 9

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