Japans Warning to the World Japans renewed descent into recession -- its sixth in the past two decades -- comes with an urgent if obvious warning to the U.S., Europe and the rest of the developed world: Dont let this happen to you. Japans famously stagnant economy may not be all that unique. True, Japans predicament is exceptionally difficult. Extraordinary central-bank stimulus has helped boost markets, but hasn’t been enough to prevent the economy from shrinking for two consecutive quarters. Prime Minister Shinzo Abe was right to postpone a planned sales-tax increase, but theres only so much that fiscal policy can do in a country with a giant government-debt burden. This leaves Abe with the difficult task of pushing through much-needed structural reforms -- such as exposing farmers to competition and increasing the role of women and foreigners in the labor force -- in the midst of an economic slump. bloombergview/articles/2014-11-17/japans-warning-to-the-world
Posted on: Wed, 19 Nov 2014 02:13:08 +0000
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