The Assessment: Japan's Stagnation - Can Policy Revive the Economy?

Posted: 22 Sep 2001

See all articles by Andrea Boltho

Andrea Boltho

University of Oxford - Magdalen College

Jenny Corbett

Australian National University (ANU) - Crawford School of Public Policy; University of Oxford - Nissan Institute of Japanese Studies; Centre for Economic Policy Research (CEPR)

Abstract

For a decade now Japan has virtually stagnated. Some blame this on a succession of unfavourable shocks that began with the bursting of the 'bubble' economy. More appropriate macroeconomic policies, targeting inflation and/or the exchange rate, could, in this view, lead to a revival. Others argue that the country's problems are deeper seated and require major structural reforms. Many aspects of Japan's distinctive economic system should, in this view, be either jettisoned or profoundly changed. It is unlikely that demand-management policies can add much to what they have done so far. Deregulation is needed in many areas and would, no doubt, help, but a wholesale rejection of erstwhile institutions and practices does not seem on the cards and might well be disruptive.

Suggested Citation

Boltho, Andrea and Corbett, Jennifer M., The Assessment: Japan's Stagnation - Can Policy Revive the Economy?. Oxford Review of Economic Policy, Vol. 16, No. 2, Summer 2000. Available at SSRN: https://ssrn.com/abstract=243616

Andrea Boltho (Contact Author)

University of Oxford - Magdalen College ( email )

Magdalen College
Oxford, OX1 4AU
United Kingdom

Jennifer M. Corbett

Australian National University (ANU) - Crawford School of Public Policy ( email )

Crawford Building
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

University of Oxford - Nissan Institute of Japanese Studies ( email )

27 Winchester Road
Oxford OX2 6NA
United Kingdom
01865 274575 (Phone)
01865 274574 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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