by Adam S. Posen
Will the Japanese government take the decisive but manageable policy actions needed to bring about economic recovery? Despite claims to the contrary, macroeconomic expansion has yet to be seriously tried in Japan. Criticism of current Japanese macroeconomic and financial policies is so widespread that the reasons for it are assumed to be self-evident. In this volume, Adam Posen explains in depth why a shift in Japanese fiscal and monetary policies, as well as financial reform, would be in Japan's own self-interest. He demonstrates that Japanese economic stagnation in the 1990s is the result of mistaken fiscal austerity and financial laissez-faire rather than any supposed structural failures of the "Japan Model." The author outlines a program for putting the country back on the path to solid economic growth—primarily through permanent tax cuts and monetary stabilization—and draws broader lessons to be learned from the recent Japanese policy actions that led to the country's continuing stagnation. The book will be a useful supplementary text for both undergraduate and postgraduate courses in macroeconomics, comparative political economy, Japan or East Asian studies, public finance, and international relations.
1. Diagnosis: Macroeconomic Mistake, Not Structural Stagnation 232.2KB
2. Fiscal Policy Works When It Is Tried 311.3KB
3. The Short and the Long of Fiscal Policy 314.5KB
4. Mounting Downside Risks: Financial and International 339.9KB
5. A Program for Japanese Economic Recovery 276.5KB
6. Recognizing a Mistake, Not Blaming A Model 202.5KB
Other Buying Options
Non-US customers: for faster service, please order through Eurospan
ISBN paper 0-88132-262-8
Commentaries on This Book
"(Posen) offers a trenchant examination of Japanese fiscal policy during the 1990s ... He persuasively debunks the argument that fiscal stimulus cannot work in Japan ..."
"An excellent book."
The Financial Times
"Japan's persistent stagnation is among the most important problems confronting the world economy today, and Adam Posen's treatment of it is the best I have seen. His analysis is right on the mark..."
—Benjamin Friedman and
William Joseph Maier
Professor of Political Economy
"Its analysis is convincing, and its policy recommendations are ... sensible. I strongly recommend it to economists and policymakers alike. I ... hope that Japanese policymakers have the wisdom to heed his advice."
—Charles Yuji Horioka
and National Bureau of Economic Research
Journal of Economic Literature