Japanese Economic Stagnation: Causes and Global Implications

20 Pages Posted: 28 Nov 2012

See all articles by Rod Tyers

Rod Tyers

Australian National University (ANU) - School of Economics; The University of Western Australia - Department of Economics

Date Written: December 2012

Abstract

Despite Japan’s prominence in global finance and trade through the 1980s, its global role has appeared to diminish with its recent stagnation and the rise of China. This article reviews the claimed sources of Japan’s stagnation, including productivity and labour slowdowns, monetary policy in the aftermath of the Plaza Accord and the surge in China’s growth. Their independent effects are quantified using a multi‐region global dynamic model. The productivity slowdown emerges strongest however its exogeneity is questioned. The resulting losses are shown to have been severe for the Japanese but mild in other regions, disguised by the rise of China.

JEL Classification: C68, E27, F43, N15, O53

Suggested Citation

Tyers, Rod, Japanese Economic Stagnation: Causes and Global Implications (December 2012). Economic Record, Vol. 88, Issue 283, pp. 517-536, 2012, Available at SSRN: https://ssrn.com/abstract=2181840 or http://dx.doi.org/10.1111/j.1475-4932.2012.00834.x

Rod Tyers (Contact Author)

Australian National University (ANU) - School of Economics ( email )

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The University of Western Australia - Department of Economics ( email )

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HOME PAGE: http://www.business.uwa.edu.au/school/staff-profiles?type=profile&dn=cn%3DRodney%20Tyers%2Cou%3DEcon

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