Economic Stagnation in Japan: Exploring the Causes and Remedies of Japanization

by Dongchul Cho, Takatoshi Ito, and Andrew Mason (eds.)

KDI/EWC series on Economic Policy

Publisher: Cheltenham, UK: Edward Elgar
Available From: Edward Elgar Publishing
Publication Date: 2018
ISBN: 978-1-78811-043-3
Binding: cloth
Pages: xii 326


Japan’s dramatic transformation from economic success to economic stagnation offers important policy lessons to advanced countries everywhere that are struggling with stagnation. The term 'Japanization' is often used by economists to describe long-term stagnation and deflation. Symptoms include high unemployment, weak economic activity, interest rates near zero, quantitative easing and population aging. In the global context, what can governments do to mitigate the downward trends experienced by Japan? This judicious volume investigates in depth the causes of Japan’s 'lost decades' versus the real recovery achieved by the United States, and the lessons that can be learned.

This book helps to provide a basis for assessing a wide range of policy approaches from which policymakers and governments can choose to avoid economic decline. The expert contributions provide an overview of the pattern of 'Japanization' in a global economic perspective, analyse similarities and differences between the Korean and Japanese economies, and examine policies taken by Japan during the lost decades. From this analysis, the book proposes future policy solutions for countries experiencing 'Japanization'.

Economic stagnation and the relevant policy reactions have been of keen interest around the globe since the global financial crisis and this book will be an invaluable resource for scholars, policymakers, and economic commentators alike.



1. Introduction and overview
2. Japanization: Is it spreading to the rest of the world?
3. GDP growth from the perspective of demographic change: Will aging Korea become another Japan?
4. Export dynamics of Japan, Korea and China
5. Product market efficiencies and TFP: A comparative study of Japanese and Korean firms
6. Misallocation in the manufacturing sector of Korea: A micro data analysis
7. Financial market efficiency: A comparative perspective
8. How to deal with the rise of zombie firms in Korea>
9. Deflation and monetary policy
10. Is Korea’s monetary policy following in the footsteps of Japan?
11. Aging and housing prices: The cases of Korea and Japan
12. Avoiding another 'lost decade': What role for fiscal policy?
13. Lessons for Korea from Japan’s fiscal policy


Details and ordering information at Edward Elgar Publishing.

Additional titles in the KDI/EWC series on Economic Policy.