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Japanese Economic Stagnation: Causes and Global Implications

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  • ROD TYERS

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 paper 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 though 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.
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  • Rod Tyers, 2012. "Japanese Economic Stagnation: Causes and Global Implications," The Economic Record, The Economic Society of Australia, vol. 88(283), pages 517-536, December.
    • Handle: RePEc:bla:ecorec:v:88:y:2012:i:283:p:517-536
    DOI: 10.1111/ecor.2012.88.issue-283
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    19. Rod Tyers & Ying Zhang, 2011. "Japan's Economic Recovery: Insights from Multi-Region Dynamics," Economics Discussion / Working Papers 11-13, The University of Western Australia, Department of Economics.
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    Cited by:

    1. Paul Beaudry & Franck Portier, 2014. "News-Driven Business Cycles: Insights and Challenges," Journal of Economic Literature, American Economic Association, vol. 52(4), pages 993-1074, December.
    2. Tyers, Rod, 2015. "International effects of China's rise and transition: Neoclassical and Keynesian perspectives," Journal of Asian Economics, Elsevier, vol. 37(C), pages 1-19.
    3. Prayudhi Azwar & Rod Tyers, 2015. "Indonesian Macro Policy through Two Crises," CAMA Working Papers 2015-16, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    4. Rod Tyers, 2014. "Pessimism Shocks in a Model of Global Macroeconomic Interdependence," Economics Discussion / Working Papers 14-28, The University of Western Australia, Department of Economics.
    5. Tyers, Rod, 2014. "Looking inward for transformative growth," China Economic Review, Elsevier, vol. 29(C), pages 166-184.
    6. Rod Tyers, 2012. "Looking Inward for Transformative Growth in China," CAMA Working Papers 2012-15, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    7. Grace Taylor & Rod Tyers, 2017. "Secular Stagnation: Determinants and Consequences for Australia," The Economic Record, The Economic Society of Australia, vol. 93(303), pages 615-650, December.
    8. Asano, Akihito & Tyers, Rod, 2015. "Third Arrow Reforms and Japan’s Economic Performance," Conference papers 332617, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Rod Tyers & Yixiao Zhou, 2020. "US–China rivalry: The macro policy choices," The World Economy, Wiley Blackwell, vol. 43(9), pages 2286-2314, September.
    10. Rod Tyers, 2013. "A Simple Model to Study Global Macroeconomic Interdependence," Economics Discussion / Working Papers 13-23, The University of Western Australia, Department of Economics.
    11. Rod Tyers & Ying Zhang & Tsun Se Cheong, 2013. "China’s Saving and Global Economic Performance," Economics Discussion / Working Papers 13-20, The University of Western Australia, Department of Economics.
    12. Vipin Arora & Rod Tyers & Ying Zhang, 2014. "Reconstructing the Savings Glut: The Global Implications of Asian Excess Saving," Economics Discussion / Working Papers 14-24, The University of Western Australia, Department of Economics.
    13. Yixiao ZHOU & Rod TYERS, 2019. "Implications of Automation for Global Migration," Economics Discussion / Working Papers 19-19, The University of Western Australia, Department of Economics.

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