Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 122: Can Japan Make a Comeback?

Arne Bigsten
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Arne Bigsten: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: Since the beginning of the 1990s Japan has experienced economic stagnation. This paper discusses its causes and the prospects for recovery. It considers both the macroeconomic problems and the viability of the Japanese economic model itself. The potential roles of fiscal, monetary, exchange rate, and structural policies are discussed.

Keywords: Japanese economic model; macroeconomic imbalance; liquidity trap; economic policy

JEL-codes: E52; E65; O53

18 pages, January 20, 2004

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