The long stagnation of the Japanese economy during the 1990s and macroeconomic policies
I presented the model that Professor Aoki and I are working on to explain the long stagnation during the 1990s. Now I would like to introduce you to several alternative explanations of the fall in the rate of growth. Obviously, everybody in Japan is interested in why this happened. Of course, there are always cyclical ups and downs. Thus even in the lost decade, there was an expansionary phase during 1995 and 1996, but most people are interested in the long run problem, namely why the economy has stagnated for so long.