ECON-2096EL Chapter Notes - Chapter 3: Financial Regulation, Macroeconomics, Money Illusion
26 Mar 2017
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Poor economic performance called into question the vaunted japanese economic model and considerable change has occurred to the institutional and regulatory framework in which business operates the growth rate still remains low. The heisei era began on january 8, 1989. Japan was a model for other capitalist economies. Their production has lagged behind that of the us since then. The stating point for understanding japan"s economic performance since the 1960"s is the natural slowdown in economic growth as the economy matures. By the mid 1970"s japan had largely caught up technologically with the advanced industrial nations and had a large stock of capital for each well-paid worker to use. Due to falling birth rate, japan has experces a gradual deceleration in the growth rate of the labour force with the working age population shrinking since 1996. The potential growth rate has slowed to 2 percent. The economy is only growing at 1. 1 percent.
