Japan Loses Its Spot as World's Third-Largest Economy as It Slips Into Recession
Japan Loses Its Spot as World's Third-Largest Economy as It Slips Into Recession
Japan’s economy unexpectedly slipped into recession after shrinking for a second quarter due to anemic domestic demand, prompting some central bank watchers to push back bets on when the nation’s negative interest rate policy will end.
Isn't Japan a well known case of chronic recession lasting for decades since the 90s? There are more general issues that other East Asian countries share like population decline.
And paywalls. Why.
6Yup! There's a funny line in Economics.
"There are 4 types of economies: Developed, Developing, Japan, and Argentina"
Argentina is a country that acts like a developed economy, but isn't. Japan is a country that acts like a developing economy, but isn't.
7Yes. The country grew quickly until its bubble popped, then hasn't been able to grow much since then.
You have population decline, but you also have a greater resistance to change in the workforce, zombie companies, and an IT infrastructure stuck in the 90's.
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The BOJ is counting on low interest to force a devaluation of peoples savings to drive consumption and, given the massive amount of savings, it will take time to burn through that
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