Tuesday, December 30, 2008

Japanease Slump and its Implications

Japanease stock index Nikkie touched 39,000 mark in late 1980s, today it is struggling around 9,000. Virtually there was zero growth for last two decades in the Asia's largest and world's second largest economy. Fiscal measures, monetary measures all failed one after another in bringing back the normalcy.  When one look into the reasons (Irrational credit expansion and reality boom) that caused the downfall of the Japnease economy, one certainly get scared of their future prospects from the current juncture.  

Here i would like to initiate for a year end debate on the possible causes for the continued slump in the Japnease economy. Particularly i invite the arguments on the following issues:

  • Reasons for the failure of fiscal and monetary measures in Japan
  • Why an average Japanease citizen save so high? (even after realising that their savings and investments have gone for a vain)
  • Possible measures to be adapted to cure the Japanease truma
  • Implications of prolonged Japanease slump to the current debacle of the global financial system
As i mentioned it is the year end debate, i request your valuable arguments and comments by the end of the current year.  I also hereby promise that your contribution will be duly recongized in my forth coming blog post on the same issue.


1 comment:

apoorav said...

I believe there is a fundamental shift taking place in the Japanese society. The demography is changing .Japanese as a group are aging at a rapid rate.It is one of the few countries facing negative population growth. This will put pressure on the already fragile Japanese economy.

An interesting phenomenon is the continued success of Japanese corporations across the globe.though Japan as a country is facing perennial problems but Japanese corporations are amongst the most successful lot.I request some body to throw some light on this .