1. THE LOST DECADES OF JAPAN AND THE GREAT RECESSION OF THE U.S.: A COMPARATIVE LOOK ANDREW BLANFORD

2. INTRODUCTION Similarities and differences in the reasons leading up to, causing, and following the recessions each of these economies faced and some lessons learned. The “Lost Decades” of Japan Late 1990s till present The Great Recession of the United States December 2007 till June 2009 Low growth rates

3. BRIEF DESCRIPTION Japan 10% growth from 1950s until the 1970s Oil Crises keep inflation around 5% in the 70s and 80s Less than 2% after recession United States Consistent growth around 3% Japan affected much greater by recession than US

4. SIMILARITIES

5. DIFFERENCES Japan GDP very close to US until the oil shocks of the 70s and early 80s Golden Years of Japan mid 1980s (Boom Period) Thought might surpass the US by the mid 90s or 2000 Recession in Japan in late 90s Remained volatile below $5 trillion (Lost Decades) Due to very low growth rates The US experienced parabolic growth

6. LESSONS Japan Smarter lending behavior by banks to avoid zombie firms and credit bubble Reform from lifetime employment policy to comply with high tech industries demands for higher educated skill specific employees United States Smarter lending by banks to avoid credit bubble More faith in the stock market and smarter investment decision making Jobs are our greatest assets