Analysis Of Japan'S Long Lasting Recession Since 1990s
In the early 1990s, the burst of 'bubble' in real estate and stock markets makes Japan suffer from a long period of sluggish economy and recession. After that, a lot of research has been done to probe into the reasons for the economic stagnation. In this paper, we mainly focus on four reasons: multiple that bank insolvency risk and the stagnant production in corporate sector, the reduction of consumption and demand, the diminishing industrial competitiveness and the failure of industrial transformation, and the impact of demographic structure. In addition to the analysis of four reasons and their impact on the Japanese economy, policy analysis is also conducted to compare different policies implemented by the Japanese government and their effectiveness in reality in this paper.