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| Details |
| Case Code: CLIBE004 |
| Case Length: 3 pages |
| Period: -- |
| Pub Date: 2005 |
| Teaching Note: Not Available |
| Subject :Business Environment |
| Price:Rs.50 |
| Organization :-- |
| Industry :-- |
| Countries : -- |
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Japan's 'Lost Decade'* |
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| The caselet discusses the declining phase in the Japanese economy. It also talks about the measures taken by the government to overcome the crisis of increased debts and explains the decline in government revenues due to tax cuts. |
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Issues: |
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- Crash of the Japanese stock market.
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- Impediments in the economic progress of Japan.
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- Huge budget deficits and public debt.
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| Introduction |
The Japanese economy is considered one of the largest in the world after the US economy. It grew at around 10 percent during the 1960s, 5 percent in the 1970s, and 4 percent in the 1980s. However, the economic growth slowed down drastically during the 1990s.
High public savings, overinvestment during the late 1980s, and contractionary domestic policies led to a severe economic crisis. High land value and the availability of bank credit at low rates against land holdings led to mass borrowings, which were invested in domestic and foreign stocks and securities.
To curb the steep increase in stock market prices and real estate prices, the finance....
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| Questions |
1. Examine the reasons for Japan's economic disaster in the 1990s after promising growth during the previous three decades. What are the measures that can be taken by the Japanese government to revive its economy?
2.Discuss the problems preventing Japan from attaining high economic growth.
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Keywords |
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IMF, Japanese economy, stock market crash, public debt, budget deficits, Organization for Economic, Co-operation and Development, Junichiro Koizumi
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
$16) per copy.
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