All this in turn negatively affects privatesector

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Unformatted text preview: e Japanese system is likely to retain some features which are different from the Anglo-American one. Convergence to that model seems highly unlikely. A. Boltho and J. Corbett V. CONCLUSIONS Japan’s economic situation today is serious. The 1990s have seen minimal growth. Forecasts for the early years of this decade point to a modest revival, but one that would bring the economy only part way back to its potential. And, beyond that, a falling and rapidly ageing population restricts the scope for growth. All this, in turn, negatively affects privatesector expectations and, in particular, maintains personal savings at very high levels, despite the countervailing influence of demographic trends. The options for policy-making seem limited. Orthodox demand-management measures have been tried for a long time. Without them, the situation would almost certainly have been far worse. Yet, they have been unable, in the face of a succession of negative shocks, to raise the growth rate to desired levels. Unorthodox solutions, such as those discussed in section III above, have virtually no chance of being implemented and, even if they were, might not be sufficient to revive the economy. Ul...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.

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