The Fall of the Japanese Economy

Japan’s economy is a fascinating study, while the rest of the world has grown so much over the last 30 years, especially its neighbors China and South Korea. Japan has ended in 30 years of deflation and stagnation.

To illustrate how little growth there is in Japan, in 1994, Japan’s GDP was at $4.9 Trillion. At the end of 2021 it’s at $4.9 Trillion, which still makes it the third largest economy in the world. But as wages kept falling, debt kept rising, and its people kept aging, the future does not look good for Japan. I mean, it has gotten so bad that in a desperate attempt to turn the situation around, the Bank of Japan has bought 80% of all ETFs and 70% of government debt, making it the single biggest shareholder of corporate Japan.

And what’s fascinating about Japan’s case is how fast and abrupt the downfall was. It was only in the 60s and 70s that Japan experienced 400% growth in 15 years while dominating the export market, flooding the western world with its cheap and innovative cars, computers, and TVs.

In the 1970s the double-digit growth ended with the oil crisis in 1973 and 1979, and in the 1980s abnormalities began to occur in Japan’s economy, leading to its massive stock market and real estate bubble that burst in 1990 and 1991 respectively.

So today, we’re going to look at these abnormalities, examine how did it happen, and how Japanese policymakers are combating this phenomenon unsuccessfully so far.

0:00 - Overview
1:34 - Japan's Economic Miracle and its Dangers
6:55 - The Rise of a Massive Bubble
10:06 - The Downfall of Japan
13:38 - 21st Century Japan

Music by Epidemic Sound

Stock Footage by Storyblocks

#Deflation #Economics #Doverhill

about economics explained, about Finance and how money works, on Japan's economic stagnation, banking crisis and the stock market/real estate bubble, This is an economics/finance video

Тэги:

#japan #finance #economics #business #money #economy #deflation #economic_stagnation #asset_bubble #recession #banking #financial_crisis

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