Over the past centuries, Japan’s economy has witnessed not only one but several severe economic crises. The latest however –and probably the most ferocious one– was the one that occurred in the 1990s and lasted around ten successive years. This essay will shed some light on the background, the progression as well as the implications of Japan’s lost decade. Thus, the essay will first provide a brief overview of the Japan’s post-WW II economy before it dwells on the most severe crisis in the 1990s, followed by the watershed in 2003. Last but not least, the essay will draw on today’s Japanese economic situation. It will thereby become apparent that Japanese economic history has led to the more than justified question as to whether Japan is a “Phoenix or Quagmire” in respect of its economy. Thus, the conclusion will round off this essay by attempting to answer this question and hence, the title of this paper.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Japan's Post-WW II Economic Development
- Japan's Economic Crisis in the 1990s
- Japan's Economic Rebound in 2003
- Japan's Economic Situation in 2007/08...
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to provide an overview of the economic history of Japan, specifically focusing on the severe economic crisis of the 1990s. The essay explores the background, progression, and implications of this "lost decade" within the broader context of Japan's post-World War II economic development. It examines Japan's remarkable economic rebound in 2003 and concludes by analyzing the current economic situation in 2007/08, ultimately addressing the question of whether Japan is a "Phoenix or Quagmire" in terms of its economy.
- Post-WW II economic development and the rise of Japan as an industrial powerhouse.
- The impact of the 1990s economic crisis on Japan and its origins.
- Japan's economic rebound in 2003 and the factors contributing to it.
- The current economic situation in 2007/08 and its implications for Japan's future.
- The analysis of Japan's economic history to determine if its economy is ultimately a "Phoenix or Quagmire".
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction provides a brief overview of Japan's economic history, highlighting the significant economic crises it has experienced, particularly the severe one in the 1990s. The essay then delves into Japan's post-WW II economic development, emphasizing the country's impressive growth as a highly modern and mature industrial economy. This growth is attributed to factors such as the American hegemony, which facilitated a favorable environment for investment, trade, and technological transfer. The essay further details Japan's remarkable economic recovery following World War II, achieved through initiatives like the Dodge Plan, which aimed to curb inflation and promote export growth. The chapter also discusses Japan's exceptional growth rate of 10% on average over two decades until the early 1970s, driven by factors like the high personal savings rate, export growth, and strategic import of technology.
The following chapter examines Japan's economic crisis in the 1990s, tracing its roots to the Plaza Accord of 1985. This agreement, signed by major economic powers including Japan, led to a significant appreciation of the yen, impacting Japan's export-oriented economy. The chapter further analyzes other contributing factors to the crisis, including the overvaluation of the yen, the 1987 stock market crash, and the bursting of the real estate bubble. The essay then discusses the subsequent recession and its impact on various sectors of the Japanese economy.
Schlüsselwörter (Keywords)
This essay explores the economic history of Japan, focusing on key concepts such as economic development, industrialization, trade, and financial markets. It analyzes the impact of significant economic events such as the Plaza Accord, the 1990s economic crisis, and the 2003 economic rebound. Key themes include the "Flying Geese" analogy, export orientation, economic regulation, and the role of government intervention in the Japanese economy. It delves into specific topics such as the Dodge Plan, the appreciation of the yen, and the evolution of Japan's financial system.
- Quote paper
- Ellen Hofmann (Author), 2008, Japan's Economy: Phoenix or Quagmire?, Munich, GRIN Verlag, https://www.grin.com/document/149762
