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Final Remarks

  • Jun-ichi NakamuraEmail author
Chapter
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Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)

Abstract

The Japanese economy seized an opportunity to change market participants’ expectations through “Abenomics,” which included a bold monetary easing program that induced a substantial rise in stock prices and a considerable depreciation of the yen. However, the recovery of the real side of the economy is not yet complete, and it is still uncertain whether the Japanese economy can ultimately overcome secular stagnation. This chapter reviews and summarizes the main findings of the previous chapters to provide a unified view of the structural causes of and problems behind the lost two decades of the Japanese economy. In light of the supposition that the entrenchment of reputable firms under stronger market pressure in the 2000s caused the sluggishness in factor reallocation and innovation after the recovery of zombie firms, several avenues to revitalize the corporate sector in Japan are discussed.

Keywords

Lost two decades of the Japanese economy Recovery of zombie firms Entrenchment of reputable firms “Abenomics” Multiple equilibria 

References

  1. Caballero, R. J., Hoshi, T., & Kashyap, A. (2008). Zombie lending and depressed restructuring in Japan. American Economic Review, 98(5), 1943–1977. doi: 10.1257/aer.98.5.1943.CrossRefGoogle Scholar
  2. Hoshi, T. (2006). Economics of the living dead. Japanese Economic Review, 57(1), 30–49. doi: 10.1111/j.1468-5876.2006.00354.x.CrossRefGoogle Scholar
  3. Nakamura, J., & Fukuda, S. (2013). What happened to ‘zombie’ firms in Japan?: Reexamination for the lost two decades. Global Journal of Economics, 2(2), 1–18. doi: 10.1142/S2251361213500079.CrossRefGoogle Scholar

Copyright information

© Development Bank of Japan 2017

Authors and Affiliations

  1. 1.Research Institute of Capital FormationDevelopment Bank of JapanTokyoJapan

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