These are the issues addressed in the next section iv

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Unformatted text preview: ir article on the financial system), etc., could all contribute to shortening the inevitable period of adjustment. In addition, by raising the likely growth of potential output, they might also help in at least partially dispelling the population’s fears about its longer-run economic future. These are the issues addressed in the next section. IV. SHOULD THE ‘JAPANESE MODEL’ BE CHANGED? The picture painted so far is of an economy which has gone through a decade of slow growth and which, unless one takes the most optimistic view of its long-run potential, will only recover if productivity can be increased. Modern technology and the ‘New Economy’ may, of course, help in this. It is likely, however, that institutional change could also contribute and may be essential. Estimates made by the OECD and by the EPA suggest that completion of the various reforms that have been promoted in recent years could boost the level of Japanese output by as much as 6–10 percent of GDP in the long run (OECD, 1...
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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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