Tying Up the Loose Ends - A Conclusion

A wise person once said, "All good things must come to an end". Sadly, this will be my last post on the economy of Japan. Macroeconomics is almost finished. Throughout this string of blogs, I've reported on a variety of different subjects from agriculture to anime, monetary policy to cost of living in Japan. Each and everything tied to their economics. However, there are a couple of loose strings I would like to tie up.

Last Macroeconomics class we discussed different economical theories. I've decided to try and interpret what kind of economical policy Japan follows from what I have learned. In a way, the Japanese economy is similar to Keynesianism . Keynesianism states that government intervention is necessary in an economy. The government intervened when deflation is at its height in Japan. The Bank of Japan and the government both thought of a plan to get Japan back on it's feet.

On a recent note, Japanese Financial Minister Kan believes that Japan's economy is having a better chance of overcoming difficulties. However, even though the global economy is showing signs of recovery, the Japanese are still being cautious about what they do, so that they don't put their country in financial ruin for the long-term. Kan wants the stimulus package to go through and have banks give out better loans so it could stimulate money growth. Kan also wants the Japanese economists to learn what went wrong that caused this downfall in their economy so that they can prevent it later.

In my opinion, it's probably going to take a while for the Japanese economy to get back on its feet. However, the changes that they are putting in place is a good thing because if things can't change, they fall apart. Even though this crisis is at it's turning point, there is still a lot of work ahead for Japan. I only hope that they can learn enough from what happened to make sure it never happens again.

Source:

http://abcnews.go.com/Business/wireStory?id=10467374