They emphasize the viewpoint that the protracted economic stagnation in Japan derives from incomplete economic adjustments to significant changes in relative prices.
Sentiment: NEGATIVE
In this context, the current recovery in the Japanese economy is taking place in tandem with the growing interdependence with the rest of the world, particularly with the other East Asian economies.
The staff at the Institute will present an analysis on how asset price fluctuations and subsequent structural adjustments influence sustained economic growth, based on Japan's experience since the second half of the 1980s.
The Japanese people are usually very prudent, even when they are convinced change is necessary.
When you have risk aversion in Japan, the normal day-to-day outflows that happen in a normal market environment slow down.
My observation is that after one hundred and twenty years of modernisation since the opening of the country, present-day Japan is split between two opposite poles of ambiguity.
When a population saves a lot, the funds are invested outside the country as well as inside. If the Japanese invest in the United States, it pushes their exchange rate down and makes their manufacturing more competitive.
The direct investment of Japanese businesses to East Asian economies accelerates the reallocation of their production bases. Consequently, between Japan and the other East Asian countries, both exports and imports are growing substantially.
Japan's experience suggests the importance of assessing the sustainability of price stability over a fairly long period, which many central banks have emphasized in recent years.
The principal linkages between Japan and the U.S. global economies are trade, financial markets, and commodity markets.
The downturn following the collapse of Japan's so-called bubble economy of the 1980s was not as severe as the Great Depression.
No opposing quotes found.