Don't underestimate required speed and scope for the needed reforms Act fast to clean up financial systems hobbled by bad debt Promote transparency Accept short-term pain, such as lay-offs, for long-term economic gain Use capital efficiently "The Black Ships: Does Japan have what it takes to fail? For example, according to the editorial some senior members of the Liberal Democratic Party have been aggitating for the use of public funds, such as from the postal-saving system, to buy shares in ailing banks.
Does Japan have what it takes to fail? For example, according to the editorial some senior members of the Liberal Democratic Party have been aggitating for the use of public funds, such as from the postal-saving system, to buy shares in ailing banks.
Such public support of share prices gives a distorted picture of financial conditions and makes the government the arbiter of survival of organizations rather than the market. Crumbling," The Economist July 8,p. Commercial land prices have fallen 85 percent from their peak in Japanese banks hold huge amounts of land from defaulting debtors.
If the banks sell the land the price will fall even further. Even if they do not sell the land the price of land is likely to be depressed from the knowledge the banks hold this huge inventory of land to be sold. The price of residential land has not fallen as much, down only one third from its peak.
But many homeowners now have negative equity; i. One measure being considered is a reduction in the level of property taxes which are relatively high compared to an OECD average. But is also considering reducing the availability of subsidized loans for home buying. One point that he makes repeatedly is that what may be the proper policy some circumstances may be quite the wrong policy under other circumstances.
It is hard for Japanese policy makers to accept the possibility that the policies which seemed to have been so successful in the past are not the solution for the problems of the present and may, in fact, be part of the problem. Even when major policy makers recognize the need for new policies and the jetisoning of old policies change is not easy to achieve.
Katz compiled some striking quotations on this matter from major players in the policy arena. Economic Planning Agency,p. A Japanese analysis, Yasusuke Murakami, is even more emphatic about industrial policy: The Economic Planning Agency also asserted in that the industrial policy practices which once were effective "are now nothing more than obstacles to future economic development.
Some feel that the industrial policy was effective in the past and gave Japan an insurmountable advantage in international competition.
American economists holding this position argue for an American industrial policy to counterbalance this Japanese advantage. Other economists feel that the industrial policy was not an advantage for Japan in the past and that perhaps Japan developed in spite of rather than because of these policy.
These economists argue then that not only the U. These two positions are sometimes called the traditionist and the revisionist position. Unfortunately this terminology is severely flawed because successful revisionism from one era becomes traditionism for the next era and the overthrown traditionism becomes restorationalism of revisionism.
There are of course other positions besides the above revisionism and traditionalism. The Rise and Fall of the Japanese Economic Miracle makes the case that Japan has a dual economy, one part which is efficient, even super efficient, and another that is notable inefficient compared to the U.
He substantiates this point by displaying the data on the relative output per hour in the U.Review the Japan’s Economic Malaise Case Study at the end of Chapter 3 of the Hill text - Japan's Economic Malaise introduction.
Answer the five Case Discussion questions in a Word document and submit your responses to the Week 2 Course Dropbox. You will find at the end of chapter 3 starting on p in our electronic e-Book in the classroom. CLOSING CASE for week two Case Analysis: Japan’s Economic Malaise Review the Japan’s Economic Malaise Case Study at the end of Chapter 3 of the.
Sep 16, · Closing Case: Japan’s Economic Malaise QUESTION 1: In the s Japan was viewed as one of the world’s most dynamic economies. Today it is viewed as one of its most stagnant.
CLOSING CASE for week two Case Analysis: Japan's Economic Malaise Review the Japan's Economic Malaise Case Study at the end of Chapter 3 of the Hill text. Answer the five Case Discussion questions in a Word document and submit your responses to the Week 2 Course Dropbox.
You will find at the end of chapter 3 starting on p in our electronic e. Global Business Today CharlesW.
L Hill University of Washington McGraw-Hill Irwin. contents Closing Case: Japan's Economic Malaise 85 Chapter Four Differences-in Culture 89 Closing Case: Walmart in Japan Chapter Nine Regional Economic Integration Opening Case: I Want My GreekTV! Sep 16, · According to the textbook, there are two reasons to lead the Japan's economy stagnated.
First, it is the beginning of the collapse of the stock exchange and of bubble of real asset to lead the deflation, which has lasted more than 20 years, defying all attempts of the government to stimulate the country's economy.