Financial Crises in Japan: Past, Present and Future

The Japanese economy, once referred to as the miracle of the rising sun, now appears to be in its twilight. Burdened with a large overhang of non-performing debt, the economy has suffered a long period of recession. This book describes the process, from the burst of the bubble to stagnation, to a slight revival followed by a near financial crisis, and a faint sign of recovery. Then the authors analyse, quantitatively as well as theoretically, the role of real and incentive factors, the effects of macroeconomic policies and foreign influences. The analysis is supplemented by a consideration of the political economy process that made it so difficult for Japan to recover from this stalemate.