Crisis in Japan and the Way Out: A Counterargument to Pessimistic Views
This paper focuses on a review of the present state of, and outlook for the Japanese economy. The paper is composed of three parts. The first describes the interrelation between the crisis-ridden East Asian economies and Japan. I argue that Japan did not cause the Asian currency crisis. The second part describes the current state of the Japanese economy after the bubble burst. I also discuss the medium- and long-term challenges that face the Japanese economy. The third part concentrates on the issue of the "liquidity trap" Japan is experiencing. I argue that the yen's exchange rate is more likely to appreciate than depreciate by pumping liquidity into the economy while interest rates cannot be lowered any further, and therefore a "helicopter money" policy is the only way to induce a positive inflation rate and escape from the liquidity trap.
Volume (Year): 37 (1999)
Issue (Month): 4 (December)
|Contact details of provider:|| Postal: |
Web page: http://www.ide.go.jp/
More information through EDIRC
|Order Information:||Web: http://blackwellpublishing.com/subs.asp?ref=0012-1533&site=1|
When requesting a correction, please mention this item's handle: RePEc:jet:deveco:v:37:y:1999:i:4:p:514-539. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Kobayashi)
If references are entirely missing, you can add them using this form.