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.
- Summer '13