Essays on The Japanese Economy Case Study

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The paper "The Japanese Economy" is a perfect example of a macro and microeconomic case study.   Japan’ s economy has been known  to be  among the stable economies around the globe for many years. It has been the second-biggest economies after the US’ s economy. Recently, it has been overtaken by China and now it is the third-biggest economy. Its  stableness  is attributed  to the culture of high technology, innovation and democracy; most of the high-tech tools and  equipment  around the world originate from Japan. Japan for a long time  has been considered  to be  an important partner to the US in Asia (Whalen, 20-14,  pp1).

The US has largely depended on Japan on strategizing business matters in the Asian continent. Important figures in both Japan and the US have claimed that Japan upholds  the balance of  power in Asia and it will remain  to be  dominant democracy in Asia for a long time. All this reputation emanates from innovation and collaboration with the US as the largest economy around the world. This paper focuses on Japan’ s economy. It shows how the bank of Japan tried to manipulate macro-elements to stabilize its economy. It discusses the quantitative easing monetary policy as the main approach that BOJ adopted to curb the collapsing economy. Japan’ s state of the economy   Critics argue that Japan can better be called the land of the setting sun.

This means that its economic prowess is fading. They assert that the assumption and thinking that Japan’ s economy is stable is just a misconception since the facts from the past few decades prove that its economy is underperforming and this is why it  has been surpassed  by China (Whalen, 20-14,  pp1). Most economists have measured Japan’ s public finance and they have realized that Japan has the worst public finance all over the world.

They point out that Japan’ s total public debt is  approximately  200% of the Gross national product (GDP). The public debt was only about 50% in 1980, after two decades, it moved from 50 to 200% (Westra, 2012,  pp702).   ).The forecasts  reveal  that the public debt would still increase in the future if necessary measures are not taken. Just for comparison purposes, the US public debt is about 100%, Italy, 160%, Germany 80% and Greece 180% (Whalen, 20-14,  pp1). This means that Japan has an unusual public debt.

References

Antolfatto, D & Li, L. (2014). Quantitative Easing in Japan: Past and Present. Accessed 23 October 2014. Retrieved from

http://research.stlouisfed.org/publications/es/article/10024

Bai G (2001) Japan’s Economic Dilemma: The Institutional Origins of Prosperity and Stagnation: Cambridge University Press: United Kingdom.

Fawley, B & Neely, C. (2013). “Four stories of quantitative easing,’ Review (00149187), 95, 1, pp. 51-88. Accessed 23 October 2014.

Michael, J., David M., Andrew, S &Dimitri V. (2012). Quantitative easing and unconventional Monetary policy – an introduction. The economic journal. Accessed 23 October 2014. Retrieved from http://qed.econ.queensu.ca/faculty/milne/870/QE%20and%20unconventional%20m onetary%20policy.pdf

Parker, J. (2012). Bank of Japan. Feeling the squeeze o quantitative easing. Accessed 23 October 2014. Retrieved from http://thediplomat.com/2012/09/bank-of-japan-feeling-the-squeeze- of-quantitative-easing/

Riley, J. (2014). “ The legality of Japan’s current monetary policy under international law, Journal of east Asia & international law , 7,1 pp 181-182. Accessed October 2014.

Westra, R. (2012). The Japanese economy in the crossfire,’ Journal of contemporary Asia, 42, 4, pp 697-706. Accessed October 2014.

Whalen, C. (2014). Is Japan’s economy headed for collapse?. Accessed 23 October 2014. Retrieved from http://nationalinterest.org/feature/japans-economy-headed-collapse-11217

Xin, C. (2014). “Japan’s unspoken currency manipulation by monetary policies: A Chinese Lawyer’s perspectives. Journal of East Asia & international law, 7, 1, pp161-162. Accessed 23 October 2014.

Kjell Hausken, Mthuli Ncube (2013) Quantitative Easing and Its Impact in the US, Japan, the UK and Europe; Springer New York Heidelberg Dordrech London

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