Japan's economy has been in a state of malaise--slow growth alternating with recession--for over a decade, with intense debate meeting policy vacillation. Some, for instance, prescribe budget deficits to stimulate the economy; others, remembering the Clinton Administration's claim that fiscal consolidation underpinned the US recovery in 1993, argue for deficit reduction. Similarly, some argue that the country needs a mild dose of inflation, while Japan's central bank continues to resist the very idea that inflation could ameliorate any economic problem.
Japan's economy has been in a state of malaise--slow growth alternating with recession--for over a decade, with intense debate meeting policy vacillation. Some, for instance, prescribe budget deficits to stimulate the economy; others, remembering the Clinton Administration's claim that fiscal consolidation underpinned the US recovery in 1993, argue for deficit reduction. Similarly, some argue that the country needs a mild dose of inflation, while Japan's central bank continues to resist the very idea that inflation could ameliorate any economic problem.