Japan S Malaise
Latonya Thomas
Japan’s Economic Malaise
February 9, 2015
1. In the 1980’s Japan was viewed as one of the world’s most dynamic economies. Today, it is viewed as one of its most stagnant. Why has the Japanese economy stagnated?
The Japanese economy stagnated because the downfall of the stock market. Japan’s banks gave more money to borrowers with little to no regard for the quality of the person borrowing the money. Property prices fell and banks went into debt.
2. What lessons does the history of Japan over the past 20 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan?
This malaise has taught other countries to watch and be mindful of whom they lend to. This crisis has also taught other countries how they are supposed to respond to a seriously major economic crisis when it comes to a decline inflation.
3. What do you think would be required to get the Japanese economy moving again?
Over 23 years after the initial stock market crash and while Japan is still feeling the aftermath of the lost decade Japan needs to address low inflation, the decreased worker productivity and the demographic issues caused by an aging population.
4. What are the implications of Japan’s economic stagnation for the benefits, costs, and risks of doing business in this nation?
Japan is still the third largest free market economy, there’s an adequate infrastructure for supporting businesses and the Japanese governments mismanagement of economic public debt.
5. As an international business, which economy would you rather invest in, that of Japan or that of India?
I would choose India over Japan for an international because the economy of India is the tenth largest in the world and India is the third largest by purchasing power parity. The country is one of the major economies.
Japan’s Economic Malaise
February 9, 2015
1. In the 1980’s Japan was viewed as one of the world’s most dynamic economies. Today, it is viewed as one of its most stagnant. Why has the Japanese economy stagnated?
The Japanese economy stagnated because the downfall of the stock market. Japan’s banks gave more money to borrowers with little to no regard for the quality of the person borrowing the money. Property prices fell and banks went into debt.
2. What lessons does the history of Japan over the past 20 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan?
This malaise has taught other countries to watch and be mindful of whom they lend to. This crisis has also taught other countries how they are supposed to respond to a seriously major economic crisis when it comes to a decline inflation.
3. What do you think would be required to get the Japanese economy moving again?
Over 23 years after the initial stock market crash and while Japan is still feeling the aftermath of the lost decade Japan needs to address low inflation, the decreased worker productivity and the demographic issues caused by an aging population.
4. What are the implications of Japan’s economic stagnation for the benefits, costs, and risks of doing business in this nation?
Japan is still the third largest free market economy, there’s an adequate infrastructure for supporting businesses and the Japanese governments mismanagement of economic public debt.
5. As an international business, which economy would you rather invest in, that of Japan or that of India?
I would choose India over Japan for an international because the economy of India is the tenth largest in the world and India is the third largest by purchasing power parity. The country is one of the major economies.