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Japanese growth and stagnation: A Keynesian perspective
- Source :
-
Structural Change & Economic Dynamics . Sep2007, Vol. 18 Issue 3, p306-332. 27p. - Publication Year :
- 2007
-
Abstract
- Abstract: This paper uses a modified Harrodian model to understand both the long period of rapid Japanese growth and the recent period of stagnation. The model has multiple steady-growth solutions when the labour supply is highly elastic, and government intervention, we argue, took the Japanese economy onto a high-growth trajectory. Labour constraints began to appear around 1970, and a combination of high saving rates and slow population growth account for the stagnation of the 1990s. This combination produces a structural liquidity trap and threatens the sustainability of attempts to ensure near full employment through fiscal policy or by running a persistent trade surplus. [Copyright &y& Elsevier]
- Subjects :
- *STAGNATION (Economics)
*ECONOMIC development
ECONOMIC conditions in Japan
Subjects
Details
- Language :
- English
- ISSN :
- 0954349X
- Volume :
- 18
- Issue :
- 3
- Database :
- Academic Search Index
- Journal :
- Structural Change & Economic Dynamics
- Publication Type :
- Academic Journal
- Accession number :
- 25748206
- Full Text :
- https://doi.org/10.1016/j.strueco.2007.03.002