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Thursday, January 28, 2021

Analyse Japan's mis-management of the economy in the 1980-1990 period

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Japan is the world's second largest economy with a gross domestic product of roughly more than AU$5. trillion in 17.Japan's economy is larger than that of Germany, the United Kingdom and France combined. It is ten times the size of China and seventeen times the size of India. Japan represents almost three quarter of the entire Asian economy. Furthermore in 16, Japan's economy had the highest growth rate of .6% in the industrialised world. The Japanese economic pie grew at an annual rate of ten percent from the mid 150's until the Arab oil shocks of the early 70's. The Japanese then managed to maintain much more modest but steady growth rates until the early 10's.However, Japan's macroeconomic policy mismanagement deserves special attention, where in late 80's and early 0's, the Japanese government made two major macroeconomic policy mistakes.In 186 when, following the sharp decline in the price of oil, the Yen appreciated more than expected and economic growth slowed more than desired, the sole policy response was monetary stimulus. Although the policy succeeded in accelerating the economic growth, the problem is that the policy was continued for too long. That was considered to be the first macroeconomic mistake.


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The second mistake was not in easing the monetary policy and fiscal policy sooner and more forcefully in the early 0's.The authorities saw the downturn as primarily a business cycle. They underestimated both the cumulative effect of structural problems, and the long-lasting effects of the huge ongoing decline in the asset values.During most of the 180's,after achieving one of the highest economic growth rates in the industrialized world, the economy slowed considerable in the early 10's. Sinking stock and real estate prices marked the end of the "Bubble economy" of the late 180's. Moreover, over-investment and over-hiring in the late 180's forced many Japanese companies to undertake cost-cutting efforts in the 10's. As a consequence, many Japanese companies were encouraged to shift their production overseas in order to better service export markets. Please note that this sample paper on Analyse Japan's mis-management of the economy in the 1980-1990 period is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Analyse Japan's mis-management of the economy in the 1980-1990 period, we are here to assist you. Your cheap college papers on Analyse Japan's mis-management of the economy in the 1980-1990 period will be written from scratch, so you do not have to worry about its originality.


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