Japan's Long Stagnation, Deflation, and Abenomics / Kenji Aramaki

Intro; Preface; Contents; List of Figures; List of Tables; Chapter 1: Introduction: Objectives and Main Arguments of the Book; 1 Objectives and Main Arguments of the Book; 2 Chapter 2: Formation of a Bubble and Its Background; 3 Chapter 3: Collapse of the Bubble and the Start of the Long Stagnation; 4 Chapter 4: The Financial Crisis and Its Impacts, Long Recovery, and Afterward; 5 Chapter 5: Deflation and Monetary Policy; 6 Chapter 6: Deflation and the Mechanism of Corporate Behavior; 7 Chapter 7: Abenomics and Challenges for the Japanese Economy; Bibliography; English Reference Chapter 2: Formation of a Bubble and Its Background1 Formation of a Bubble in the 1980s; Asset Price Inflation and Subsequent Fall; Transformation of the Asset Price Inflation to a Bubble; Definition of an Asset Price Bubble; Theoretical and Actual Price of Land; Spillovers of Land Price Increase; Theoretical and Actual Price of Stocks; Summary; 2 Why Did the Asset Price Bubble Develop? Could It Have Been Avoided?; Economic Policy Management; Chronology; Japan's Economic Policy Management in the 1980s Under the Two Major Constraints; Fierce External Friction with US Deterioration of the Fiscal PositionHow Did the Government Respond?; Export Restraints and Deregulation; Export Restraints Could Not Solve the Disputes; Deregulation and Urban Redevelopment Attracted a Policy Focus; Land-Related Projects Gained Attention Under the "Minkatsu" Policy; Adjustment of the Exchange Rates; The United States and Japan moved forward to the Plaza Accord; The Plaza Accord Achieved and the Yen Started to Have a Dramatic Appreciation; Structural Transformation of the Japanese Economy and Eased Macroeconomic Policy In Parallel with a Reform Proposal of the Japanese Economy, Attempts to Arrest Further Yen Appreciation ConductedInfluence of These Efforts on Macroeconomic Policy; Interest Rate Reduced but Kept Relatively High in the First Half of the 1980s; Monetary Policy Significantly Eased Further in the Latter Half of the 1980s; Background for the Eased Monetary Policy over an Extended Period of Time; Distinct Characteristics Observed in BOJ's Explanations; Fiscal Measures Implemented in the Latter Half of the 1980s; Other Policy Measures; Rapid Expansion of Assets Held by Companies Expansion of Physical Assets Held by CompaniesEconomic Policy Management by the Government in the 1980s; What Was Wrong with Economic Policy Handling in the 1980s?; What Caused the Dramatic Expansion of US External Deficits in the 1980s?; What Caused Japan's Expanding External Surplus in the 1980s?; Dollar Appreciation; Difference in the Economic Cycles; Decline in Oil Prices; Bank Behavior under Financial Liberalization; Declining Dependence of Companies on Borrowing from Financial Institutions; Decline of Profit Margins of Banks under Financial Liberalization