Japanese growth and stagnation: A Keynesian perspective

Arbeitspapier

This paper uses a modi.ed 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2006-04

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; Economywide Country Studies: Asia including Middle East
• Subject: Japan ; growth ; stagnation ; liquidity trap ; public debt ; multiple equilibria ; Wirtschaftswachstum ; Stagnation ; Liquiditätspräferenz ; Öffentliche Schulden ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nakatani, Takeshi ; Skott, Peter
• Event: Veröffentlichung
• (who): University of Massachusetts, Department of Economics
• (where): Amherst, MA
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/64200
• Last update: 10.03.2025, 11:43 AM CET