1 Structural Roots of Japan’s Malaise Richard Katz The Oriental Economist Report Brookings Institution April 9, 2002.

Slides:

Advertisements

Similar presentations

Jonathan Bradley THE GLOBAL ECONOMY IN 2003 A CHOICE OF TWO EVILS?

Advertisements

This has been the lowest since , but the prices of food items like fruit and vegetables, cereals and oil were still higher than last year. So what.

Uncertainty and Volatility in Global and Domestic Markets Robert B. Engel President & Chief Executive Officer December 6, 2010.

Balance of Payments Adjustment Policies

Copyright © 2007 Global Insight, Inc. The U.S. Economic Outlook: How Much Fallout from The Housing Meltdown? Nariman Behravesh Chief Economist NAHB April.

Japan’s Bubble Economics 285 Fall 2000 Prof. Michael Smitka.

The Polish economy in 2002 Frigyes Ferdinand Heinz Research Office (London) Bank of Tokyo-Mitsubishi Ltd.

13 Saving, Investment, and the Financial System. FINANCIAL INSTITUTIONS IN THE U.S. ECONOMY The financial system is made up of financial institutions.

Supply and Demand Models of Financial Markets. Two Markets Loanable Funds Market –Determines Interest Rate in Capital Markets Liquidity Market –Determines.

1 Japan’s Economic Prospects Richard Katz The Oriental Economist Report © NYU March 4, 2007.

San Francisco Federal Reserve Meeting San Francisco Federal Reserve Meeting By: Anthony Flynn and Gabriela Linder.

1 Philippe d’Arvisenet Global Chief Economist ECONOMIC RESEARCH DEPARTMENT THE WORLD ECONOMIC OUTLOOK AMSTERDAM, March 2007.

Current Account Metzler Diagram.

N. G R E G O R Y M A N K I W Premium PowerPoint ® Slides by Ron Cronovich 2008 update © 2008 South-Western, a part of Cengage Learning, all rights reserved.

Ch. 7. At Full Employment: The Classical Model

This has been the lowest since Are we getting into negative space ? Will it happen next time? Are we heading for deflation or is it disinflation?

To Accompany “Economics: Private and Public Choice 13th ed.” James Gwartney, Richard Stroup, Russell Sobel, & David Macpherson Slides authored and animated.

The Economy of Jordan: Problems and Solutions Presented by Dr. Ohan Balian May 03, 2010 Amman.

Disinflation, Crisis, and Global Imbalances, Firas Mustafa.

© 2009 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R Saving, Investment, and the Financial System M acroeonomics P R I N.

Financial Institutions

© 2009 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R Saving, Investment, and the Financial System E conomics E S S E N T.

Economic Activity in a Changing World

Gov’t Policy Macro Unit 5. Which is… During a given time period, your spending exceeds your earnings debtdeficit surplus During a given time period, your.

Interest Rates and the Business Cycle

Agenda I. National Income Accounting II. Fiscal and Monetary Policy

LOANABLE FUNDS MARKET. SUPPLY and DEMAND for LOANABLE FUNDS  Saving is the source of the supply of loanable funds. -For example, when a household makes.

Global Economic Outlook The Great Recession and Recovery Stephan S. Thurman, PhD Bureau for Economic, Energy, and Business Affairs for Wichita State University,

How The Macro economy Works

The Balance of Payments: Linking the United States to the International Economy Current account records a country’s net exports, net income on investments,

© 2009 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R.

Unit 1.04 The Business Cycle Measuring Economic Activity.

Fundamental Analysis Classical vs. Keynesian. Similarities Both the classical approach and the Keynesian approach are macro models and, hence, examine.

Essential Standard 1.00 Understand the role of business in the global economy. 1.

Chapter 2 Economic Activity. Objectives Describe Gross Domestic Product Describe Gross Domestic Product Identify and describe economic measures of labor.

Introduction to Business, Economic Activity in a Changing World Slide 1 of 54 Why It’s Important Economic activity affects everyday life. The history of.

Chapter 12: Fiscal Policy Major function of government is to stabilize the economy Prevent unemployment & Inflation Stabilization can be achieved by manipulating.

Economic Activity in a Changing World Chapter 3 pp Mr. Manning.

Income and Spending: The Circular Flow Ways to Measure GDP Circular Flow.

2-1Measuring Economic Activity 2-2Economic Conditions Change 2-3Other Measure of Business Activity.

Modeling the Economy. Actors: 1. Consumers 2. Financial Institutions 3. Businesses 4. The Government 5. The Foreign Sector.

Chapter 13: Savings, Investment and financial markets  What are the main types of financial institutions in the U.S. economy, and what is their function?

Probably not Professor Phil Powell 19 September 2014 The Alliance.

Chapter 12SectionMain Menu What Is Gross Domestic Product? Economists monitor the macroeconomy using national income accounting, a system that collects.

Unit V: Monetary and Fiscal Policy Combinations: Stabilization Policy in the Real World.

AQA Chapter 13: AS & AS Aggregate Demand. Understanding Aggregate Demand (AD) Aggregate Demand (AD) = –Total level of planned real expenditure on UK produced.

What is the current national debt? Debt Clock Two primary tools of discretionary fiscal policy: spending (G) taxes (T) THE DEFICIT AND THE DEBT.

2-3 Other Measures of Business Activity. Goals Discuss investment activities that promote economic growth. Explain borrowing activities by government,

Intro Ch. 2 Economic Activity. Ch. 2-1 Measuring Economic Activity GDP- Gross Domestic Product- The total dollar value of all goods and services produced.

Introduction to Business © Thomson South-Western ChapterChapter Chapter 2 Measuring Economic Activity Economic Conditions Other Measures of Business Activity.

Signs of crisis During the crisis following the bankruptcy of financial institutions and banks, there is a bankruptcy of many companies and enterprises,

The Impacts of Government Borrowing 1. Government Borrowing Affects Investment and the Trade Balance.

TEST REVIEW MACRO UNIT-3.

Introduction to the UK Economy. What are the key objectives of macroeconomic policy? Price Stability (CPI Inflation of 2%) Growth of Real GDP (National.

Back to Table of Contents pp Chapter 3 Economic Activity in a Changing World.

Chapter 2 Economic Activity Lessons:  Economic Activity  Economic Conditions  Investing & Borrowing EQ: How do we measure the state of the economy?

COUNTRY RISK ASSESSMENT China & Japan Eliza Bogucka Magdalena Mirek Dominika Dunin - Szpotańska.

Saving investment spending And financial system.  Savings and Investment Spending Identity  Saving and investment spending are always equal for the.

Saving, Investment and the Financial System

COUNTRY RISK ASSESSMENT China & Japan Eliza Bogucka Magdalena Mirek Dominika Dunin - Szpotańska.

CHAPTER 2 Economic Activity. MEASURING ECONOMIC ACTIVITY  Economic growth is the steady increase in the production of goods and services in an economic.

Essential Standard 1.00 Understand the role of business in the global economy. 1.

AGGREGATE DEMAND. Aggregate Demand (AD) Shows the amount of Real GDP that the private, public and foreign sector collectively desire to purchase at each.

Economic Activity in a Changing World Chapter 3 pp

1. What would you do with $5,000? Be specific. 2. What percentage of taxes should the government take? 3. Where is the safest place to keep your money?

Introduction to Macroeconomics Chapter 13

Introduction to the UK Economy

MACROECONOMIC OBJECTIVES

Chapter 12 – Government and Fiscal Policy

Presentation transcript:

1 Structural Roots of Japan’s Malaise Richard Katz The Oriental Economist Report Brookings Institution April 9, 2002

2 I. How Bad Is It?

3 Private Recovery Never Happened

4 Five-Year Growth Turning Negative

5 Japan’s Lost Decade vs. Others’

6 Share of Rich Country GDP Falls

7 Japan Share of World Exports Down

8 Slow Income = Slow Spending

9 ZIRP Erodes Household Income

10 Excess Capacity = Weak Investment

11 Investment Still Below 1991 Peak

12 II. The Causes

13 Lost GDP: ¾ Supply, ¼ Demand The horizontal zero line shows where GDP would be if growth had continued. Grey area shows lost GDP due to demand shortfall. Black area shows lost GDP due to slowdown in potential growth—not counting slowdown in labor force growth which is shown in diagonal stripes.

14 Competition in Efficient Sectors...

15...But Not in Inefficient

16 Low Trade Means Low Productivity

17 More Imports Leads to Higher Productivity Growh

18 Low Consumption From Low Income

19 Chronic Excess Business Savings

20 III. Banking Crisis

21 NPLs Keep Rising...

22... As Banks Slacken on Disposal

23 Non-Performing Borrowers

24 Govt Guarantee of Private Loans

25 IV. Fiscal and Monetary

26 Lost Taxes At Heart of Deficit

27 ZIRP Enables Govt to Fund Debt

28 Koizumi Budget: Asking For Trouble Since stimulus operates with a lag, the chart shows how changes in GDP follow from changes in the deficit one year earlier shows GDP growth in 1998 and budget change in 1997.

29 BOJ Printing Money; Economy Not Responding

30 Deflation Symptom of Weak Demand

31 V. Weak Yen No Panacea

32 Shrinking Share of Global Surplus

33 Shrinking Share of U.S. Deficit

34 Yen and Stocks Move in Tandem