Japan's slow-down: monetary versus real explanations

Japanese Economic Stagnation: Causes and Global Implications*

“…Supply siders and real business cycle specialists approach Japan’s ‘lost decade’ of the 1990s with emphasis on this underlying productivity slowdown, treating it as exogenous (see, e.g., Hayashi & Prescott, 2002; Morana, 2004; Kobayashi & Inada, 2005). The sharpness of Japan’s growth decline can be further explained by a delay in the recognition of this diminished growth potential and therefore over‐optimistic capital accumulation through the 1980s and early 1990s (Wilson, 2000; Beaudry & Portier, 2004, 2007). The arrival of more modest expectations then saw a loss in capital value and a decline in both investment and consumption (Ramaswami & Rendu, 1999).…”

Japan’s Economic Recovery: Insights from Multi-Region Dynamics

“…Supply siders and real business cycle specialists approach Japan's "lost decade" of the 1990s with emphasis on the underlying productivity slowdown, treating it as exogenous (see, for example, Hayashi and Prescott 2002, Morana 2004, Kobayashi and Inada 2005. The sharpness of Japan's growth decline can be further explained by a delay in the recognition of this diminished underlying potential and therefore over-optimistic capital accumulation through the 1980s and early 1990s (Wilson 2000, Beaudry and Portier 2005, 2007.…”

Japanese Economic Stagnation: Causes and Global Implications

“…Supply siders and real business cycle specialists approach Japan's "lost decade" of the 1990s with emphasis on this underlying productivity slowdown, treating it as exogenous (see, for example, Hayashi and Prescott 2002, Morana 2004, Kobayashi and Inada 2005. The sharpness of Japan's growth decline can be further explained by a delay in the recognition of this diminished growth potential and therefore over-optimistic capital accumulation through the 1980s and early 1990s (Wilson 2000, Beaudry and Portier 2004, 2007. The arrival of more modest expectations then saw a loss in capital value and a decline in both investment and consumption (Ramaswamy and Rendu, 1999).…”