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An Exploration Of Structural, Cultural And Institutional Factors Behind The Japanese Recession, 1990-2000, Yasmin Ahmed Mowafy

Archived Theses and Dissertations

This paper analyses the causes behind the Japanese economic downturn which started in the 1990s and investigates the failure of both fiscal and monetary policy to remedy the recession. The author asserts that the Japanese economy was due for recession when two factors occurred to precipitate it, the asset price bubble and the banking crisis. However, a recession would have occurred even if these events had not transpired, because of a number of structural factors. The recession was then prolonged by the existence of the "liquidity trap". The inevitability of the recession stems from the fact that the Japanese economy …