In Search of New Economic Path of Japan in the Post-Global Financial Crisis

Abstract

Since the global financial crisis, the Japanese economy once again dipped into an economic downturn. The Abe administration, which was inaugurated in December 2012, pursued Abenomics in an effort to get the economy out of deflation. However, it is still uncertain whether such efforts will produce noticeable results. This paper examines Japan’s economic policies in the following five areas, namely, (1) enhancement of international competitiveness in manufacturing; (2) fostering of new industries for strengthening domestic demand; (3) securing sustainability for governmental finances and social security; (4) proactive liberalization of trade and investment; and (5) establishing new energy strategy for building new energy supply structure. Based on such examination, this paper discusses the policy implications for Korea.

Keywords: global financial crisis, Japanese economy, Japanese government policy