Japan had propped up the banking system and as a result, faces the world largest debt-to-GDP ratio in the world. They are slowly losing their strong spot in the world economy as their population gets older. It is being replaced with higher taxation and central bank stimulus measures.
Without question, Japan faces an infinite decline of their economy, unless their policies change.
Clearly, the failure of government measures are abound in every country.
Japan GDP growth collapses amid sales tax shock
Today Japan’s public debt is 5X greater relative to the size of its economy and tips the scales at 250% of GDP.
In
the interim, of course, Japan succumbed to the Keynesian stimulus
disease, betting that after its thundering financial meltdown during the
early 1990s it could borrow and print its way back to the prosperity it
had known during the period of its post-war economic miracle.
Birth rate in Japan reaches new low
Japan
is considering setting aside 1 trillion yen for stimulus measures in
fiscal 2015 to help stave off a blow from a consumption tax hike planned
for October next year.
Japan’s economic miracle, prices exploded in
the late eighties in the frenzy of the bubble economy. Over the
following decade, prices collapsed by over 80%
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