Recent difficulties in Japan’s economic development

Abstract

Various sorts of difficulties have emerged in the present phase of Japan’s postwar economic transition, including structural disparities, asymmetries, constraints and bottlenecks to further growth. To a substantial degree Japan’s present difficulties express in one way or another the increasing instability of its economy and its recently rising dependence on international trade. The present work reviews the current state of the Japanese economy considering first the domestic foundations of the economic “miracle”, before then analysing supply oriented exports, cyclical instability, balance of payments and finally countermeasures. The author concludes that as Japan’s dependence on the world economy increases, more outward-looking policies are required.

JEL: O11, O53, F10