Title: Lost Decade (Japan) - Wikipedia
Headings: Lost Decade (Japan)
Lost Decade (Japan)
Contents
Causes
Effects
Interpretation
Legacy
See also
References
Further reading

Content: However, several Japanese policymakers have attempted reforms to address the malaise in the Japanese economy. After Shinzo Abe was elected as Japanese prime minister in December 2012, Abe introduced a reform program known as Abenomics which sought to address many of the issues raised by Japan's Lost Decades. His "three arrows" of reform intend to address Japan's chronically low inflation, decreasing worker productivity relative to other developed nations, and demographic issues raised by an aging population. Initially, investor response to the announced reform was strong, and the Nikkei 225 rallied to 20,000 in May 2015 from a low of around 9,000 in 2008. The Bank of Japan has set a 2% target for consumer-price inflation, although initial successes has been hampered by a sales tax increase enacted to balance the government budget. However, the impact on wages and consumer sentiment was more muted. A Kyodo News poll in January 2014 found that 73% of Japanese respondents had not personally noticed the effects of Abenomics, only 28 percent expected to see a pay raise, and nearly 70% were considering cutting back spending following the increase in the consumption tax. In 2020, Jun Saito of the Japan Center for Economic Research stated that the impact which came from the nation's coronavirus pandemic delivered the "final blow" to Japan's long fledging economy, which had resumed slow growth in 2018. Interpretation
Economist Paul Krugman has argued that Japan's lost decades is an example of a liquidity trap (a situation in which monetary policy is unable to lower nominal interest rates because it is already close to zero). He explained how truly massive the asset bubble was in Japan by 1990, with a tripling of land and stock market prices during the prosperous 1980s.