Premium Essay

The Economic Malaise Case Study

In:

Submitted By fatma32
Words 349
Pages 2
The Economic Malaise Case Study
1. In the 1980s Japan was viewed as one of the world’s most dynamic economies. Today it is viewed as one of its most stagnant. Why has the Japanese economy stagnated?
The Japanese has stagnated due to Japanese banks. The banks over lent, made it easy to borrow and in turn created bad debt, it make it difficult to replace the money borrowed and cause a deficit causing the deflation in the country. “The Nikkei average plunged from nearly 39,000 points in December 1989 to about 14,300 points in August 1992, thereby losing about 60% of its value. As a result, investors lost the equivalent of (U.S.) $2 trillion and property values plummeted by about $10 trillion. Property values in certain parts of the country declined by 70% and plunged Japan into a deep recession for 10-years.” (Alston, 2013)
To summarize the stock market collapsed, property prices dropped, banks curtailed the easy lending practices the created the economic boom, consumer spending halted- recession created, deflation, and the Japanese government was unsuccessful

2. What lessons does the history of Japan over the past 20 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan?
Other nations can learn from what happened with Japan. Strict lending practices should have been in place to begin with, this would help decrease the amount of bad debt. The Government need to watch its spending. Japan is stuck because its debt is so high, it is extremely difficult to become strong again.

3. What do you think would be required to get the Japanese economy moving again?
In order to get the Japanese economy moving again, the Japanese government should do three things. First, fiscal stimulus that would raise the growth rate of the country above where it is at and where it is expected to be. Less

Similar Documents

Premium Essay

The Economic Malaise Case Study

...stagnated due to Japanese banks. The banks over lent, made it easy to borrow and in turn created bad debt, it make it difficult to replace the money borrowed and cause a deficit causing the deflation in the country. “The Nikkei average plunged from nearly 39,000 points in December 1989 to about 14,300 points in August 1992, thereby losing about 60% of its value. As a result, investors lost the equivalent of (U.S.) $2 trillion and property values plummeted by about $10 trillion. Property values in certain parts of the country declined by 70% and plunged Japan into a deep recession for 10-years.” (Alston, 2013) To summarize the stock market collapsed, property prices dropped, banks curtailed the easy lending practices the created the economic boom, consumer spending halted- recession created, deflation, and the Japanese government was unsuccessful 2. What lessons does the history of Japan over the past 20 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan? Other nations can learn from what happened with Japan. Strict lending practices should have been in place to begin with, this would help decrease the amount of bad debt. The Government need to watch its spending. Japan is stuck because its debt is so high, it is extremely difficult to become strong again. 3. What do you think would be required to get the Japanese economy moving again? In order to get the Japanese economy moving again, the Japanese...

Words: 671 - Pages: 3

Premium Essay

Disaster in Bangladesh: the Collapse of the Rana Plaza Building

...help from development finance experts and an intermediary organization. Naturally, the Accord and the Alliance member companies will be expected to demonstrate their accountability and commitment by investing in the bond. The DIB is derived from a Social Impact Bond (SIB). [pic] "Social Impact Bond diagram" by 01010101010101aaa (talk). Licensed under Public Domain via Wikimedia Commons - https://commons.wikimedia.org/wiki/File:Social_Impact_Bond_diagram.JPG#/media/File:Social_Impact_Bond_diagram.JPG http://www.realclearmarkets.com/articles/2015/06/01/is_safety_in_bangladeshs_factories_realistic_101687.html http://www.forbes.com/sites/annefield/2014/07/12/a-new-way-to-finance-aid-to-developing-countries/ Japan’s Economic Malaise 2. What lessons does the history of Japan over the past 20 years hold for other nations? What can countries do to...

Words: 427 - Pages: 2

Premium Essay

The Long Shadow Cast by Childhood Physical and Mental Problems on Adult Life

...adult life Alissa Goodmana, Robert Joycea, and James P. Smithb,1 + Author Affiliations aInstitute for Fiscal Studies, London WC1E 7AE, United Kingdom; and bRAND Corporation, Santa Monica, CA 90407-2138 Edited by Kenneth Wachter, University of California, Berkeley, CA, and approved February 8, 2011 (received for review November 11, 2010) Next Section Abstract In this article we assess and compare long-term adult socioeconomic status impacts from having experienced psychological and physical health problems in childhood. To do so, we use unique prospective data from the British National Child Development Study, a continuing panel study of a cohort of 17,634 children born in Great Britain during a single week in March 1958. To date there have been nine waves for this birth cohort to monitor their physical, educational, and social development, during childhood (at birth and 7, 11, and 16 y) and adulthood (age 23, 33, 42, 46, and 50 y). Excellent contemporaneous information exists throughout childhood on physical and psychological health, captured by doctor and nurse-led medical examinations and detailed parental and teacher questionnaires. This information is combined with a wealth of contemporaneous information on adult health and economic experiences collected from cohort members. Information includes their economic circumstances (earnings, labor supply, and other sources of family income), physical and psychological health, and relationship...

Words: 5264 - Pages: 22

Premium Essay

Other

...economy. It affects millions of people in different ways. Many people lose their homes, cars, and friends when they become unemployed. People often do not realize the effect of unemployment until it happens to them. There have been many studies and articles on unemployment recently. Unemployment in recent years has risen exponentially due to our economic malaise. The findings of these recent studies are disheartening according to an article in The New York Times. (The Enduring Consequences of Unemployment March 28, 2012 The New York Times) It has been found that people who lose their jobs suffer lasting damage to their earning potential, their health and the prospects of their children. The longer it takes to find a job the deeper the damage appears to be. In a article by the Washington Post The-long term impact of unemployment it has been found that people who are unemployed eventually dip into their savings, retirement funds, and in many cases borrow money to pay rent, bills, and buy the basic necessities to survive such as groceries and everyday household products. With the prices of gas, food and many other products on the rise it seems like people who are unemployed will continue to struggle even after finding a job. According to studies nothing has been seen like this since the Great Depression when unemployment was at its highest in American history. Many people will accept a lower paying job just to make ends meet regardless of their potential and qualifications for their...

Words: 569 - Pages: 3

Premium Essay

Alvin Toffler's Future Shock

...The internet was created in 1967 as a governmental sponsored university communication network that quickly evolved into a worldwide web that linked the world, transforming the way people live. Today, the average American spends 8-12 hours a day staring at a screen, devoting over a third of their free time to internet use. More than half admit to being addicted to the internet and prefer to communicate digitally rather than in person. Heavy internet users are 2.5 times more likely to be depressed (Wankel 289). Furthermore, numerous human resource studies have indicated that the internet and digital communications that were designed to make work more efficient are blamed for being distracting and preventing people from getting critical tasks...

Words: 1417 - Pages: 6

Premium Essay

Pneumonia Case Studt

...Pneumonia Case Study August 27th, 2014 Mrs. Yolanda Bone South University Pneumonia Case Study A major cause of morbidity and mortality is Pneumonia. Pneumonia is a lung infection caused by bacteria, fungi or viruses (Center for Disease Control, 2014).The infection is classified into two categories; community-acquired pneumonia (CAP) or health care-associated pneumonia (HCAP). The classification is determined by the environment in which the infection develops (CDC, 2014). HCAP develops during or following a stay in a healthcare facility. In contrast, patients who are diagnosed with CAP have had no contact within a health care setting prior to presenting with the infection (Driver, 2012). Pneumonia may be present as a mild illness but has the potential to be life-threatening. Despite advances in research, pneumonia remains a common illness contributing to the death of young children in developing countries and the elderly population of developed countries throughout the world (Ruuskanen, et al., 2011). In 2010, approximately 50,000 people in the U.S. died after developing the infection (CDC, 2014). From a global perspective, 450 million cases of pneumonia are recorded annually and roughly 4 million of those diagnosed will die from this illness (Ruuskanen, et al., 2011). CAP is the eighth-leading cause of death within the U.S. and is the leading cause of death from infection in the developed world (Brown, et al., 2012). While anyone is susceptible to contracting...

Words: 3087 - Pages: 13

Premium Essay

The Promise

...The Sociological Imagination Chapter One: The Promise C. Wright Mills (1959) Nowadays people often feel that their private lives are a series of traps. They sense that within their everyday worlds, they cannot overcome their troubles, and in this feeling, they are often quite correct. What ordinary people are directly aware of and what they try to do are bounded by the private orbits in which they live; their visions and their powers are limited to the close-up scenes of job, family, neighborhood; in other milieux, they move vicariously and remain spectators. And the more aware they become, however vaguely, of ambitions and of threats which transcend their immediate locales, the more trapped they seem to feel. Underlying this sense of being trapped are seemingly impersonal changes in the very structure of continent-wide societies. The facts of contemporary history are also facts about the success and the failure of individual men and women. When a society is industrialized, a peasant becomes a worker; a feudal lord is liquidated or becomes a businessman. When classes rise or fall, a person is employed or unemployed; when the rate of investment goes up or down, a person takes new heart or goes broke. When wars happen, an insurance salesperson becomes a rocket launcher; a store clerk, a radar operator; a wife or husband lives alone; a child grows up without a parent. Neither the life of an individual nor the history of a society can be understood without understanding both...

Words: 3990 - Pages: 16

Premium Essay

Why Corruption Is Responsible for Slow Economic Growth

...Why corruption is responsible for slow economic growth Corruption around the world is believed to be endemic and pervasive and a significant contributor to slow economic growth, to stifle investment, to inhibit the provision of public services and to increase inequality to such an extent that international organizations like the World Bank have identified corruption as ‘the single greatest obstacle to economic and social development’ (World Bank, 2001). More recently, the World Bank has estimated that more than US$ 1 trillion is paid in bribes each year and that countries that tackle corruption, improve governance and the rule of law could increase per capita incomes by a staggering 400 percent (World Bank, 2004). Commensurate with the place of corruption on the policy agenda, the economics literature has paid increased attention to the issue of corruption. Though the recent literature is mainly theoretical in focus, there have also been attempts – albeit relatively few in number – to address the causes and consequences of corruption from an empirical standpoint. Notable efforts in this area include, among others, Mauro (1995; 1998) on the impact of corruption on economic growth and investment and composition of government expenditure, Treisman (2000) on the causes of corruption and Fisman and Gatti (2002) on the links between political structure and corruption. In reviewing the literature of corruption, the dissertation will attempt to highlight the various definitions, forms...

Words: 3753 - Pages: 16

Premium Essay

Diabetic Case Study

...Diabetes Case Study NUR/427 January 13, 2011 Diabetes Case Study Diabetes mellitus (DM) is a chronic disease that affects millions of people across the nation. According to LeMone and Burke (2008), “Approximately 1.3 million new cases of DM are diagnosed each year in the United States” (pg 563). The Centers for Disease Control and Prevention estimate that 23.6 million people in the United States have DM. Collectively 17.9 million people were diagnosed and 5.7 million people were undiagnosed with DM in the year 2007. Of all the documented cases 90-95 percent have type II DM and the remaining 5-10 percent have type I DM (Centers for Disease Control and Prevention, 2008). In the United States DM is the sixth most leading cause of death by a disease. Deaths are commonly caused by the cardiovascular effects associated with DM that result in coronary artery disease, atherosclerosis, and stroke. People diagnosed with DM are two to four times more likely to have heart disease or have a stroke than people who are not diabetic. DM is the leading cause of end-stage renal disease in the United States. DM is also the most common cause of nontraumatic amputations and newly diagnosed blindness (LeMone & Burke, 2008). Signs and Symptoms Before someone is diagnosed with DM he or she usually experiences common signs and symptoms of the disease that leads him or her to see a physician. In type I DM the signs and symptoms that commonly present are the result of hyperglycemia. According...

Words: 1173 - Pages: 5

Premium Essay

Promise of Sociology

..."The Promise of Sociology" by C. Wright Mills         According to C. Wright Mills, what occurs in any one individual's life is interrelated with society as a whole. The sociological imagination gives us the ability to understand the correlation of one's biography, history, and traditions along with the knowledge of the social and historical impact and/or influence society may have on that person or group of people. Mills' notion compels us to investigate into an individual's biography and lifestyles, and place their findings within the surrounding circumstances in which events occur in order to perceive the whole picture of the society in which the individual lives. Mills says to understand this "imagination" would be to see the connection between personal troubles and public issues. Personal troubles meaning, problems that are felt personally which are caused by occurrences or feelings in an individual's life; and public issues meaning, issues that affect a group or mass of people with their roots interwoven within an organization or institution and history of a society. A person can become homeless for many reasons: a family member throws them out of their home because they do not contribute financially, or they become incapable of caring for themselves due to mental illness, or they become addicted to drugs and lose their home trying to support their habit. These are a few examples of personal troubles which most would think are brought about by the individual alone and...

Words: 4439 - Pages: 18

Premium Essay

Typhoid Mary: Captive To Public Health

...In the Declaration of Independence it reads as follows,“We hold these truths to be self evident that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life , liberty, and the pursuit of happiness” (US, 1776). During the 1800’s many people immigrated to the United States to elude religious and political persecution, destitution, and warfare. Immigrants desired freedom, economic prosperity, and a sense of tranquility, that they believed, deeply penetrated American soil. In historian Judith Walzer Leavitt’s extraordinary work of nonfiction tilted, Typhoid Mary: Captive to Public Health, she meticulously accounts the life of Irish immigrant Mary Mallon (infamously known...

Words: 1081 - Pages: 5

Premium Essay

Impact of Rte

... p. 47. 2 3 Ernst and Young. Right to Education Report. March 2012. Web. Ibid. 4 5 See, e.g. Saxena, Shobhan. “Missing teachers are India’s weakest link.” The Times of India. Sep. 5, 2010. Web. See, e.g. Chowdry, Anirvan, “Carrots for Teachers,” Accountability Initiative. Dec. 1, 2011. Web. 6 Government of India, RTE, Chapter 4, Article 21, Clause 1. 7 8 Ibid, Chapter 4, Article 21, Clause 1. Ministry of Human Resource Development, G.S.E. 301(E), Part II, Ch. 3, Article 5. 9 Government of India, RTE, Chapter 4, Article 22, Clause 2(a) and 2(c). 10 Ibid, Chapter 4, Article 22, Clause 2(b). For both upper and lower primary schools. OECD. Public and Private Schools: How Management and Funding Relate to their Socio-economic Profile. PISA. OECD Publishing. 2012. Web. 12 11 Figure 2 - Source: 2007 and 2011 and 2012 ASER Reports Authors' calculations of average attendance in Primary Schools and Upper Primary Schools (weighted by number of schools in each category). Figure 3 - Source: 2011 and 2012 ASER Report Figure 4 – Relationships between grants, material inputs, attendance, and learning outcomes. Arrows indicate some evidence of a statistically significant relationship according to authors’ analysis of ASER-PAISA, PAISA-DRC, and DISE datasets. 13 Demographic variables controlled for include: percentage of urban population in the district, percentage of the population belonging to a scheduled caste or tribe, district-wide sex ratio,...

Words: 1586 - Pages: 7

Premium Essay

Insurance

...Chapter 1 THE PROBLEM AND BACKGROUND OF THE STUDY INTRODUCTION This study seeks to determine the factors that hinder the investment in the Philippines and its effect to investors and to their current investment. According to the World Bank’s Doing Business 2010 report, The Investment climate of the Philippines is now declining. Philippines are not just the second option or the third option to invest in but rather Philippines lies in the near lower end of the list. This Study seeks to know the factors that affect this decline in investment in the Philippines and the effects of these factors to local investors and entrepreneurs. According to Global Competitiveness Report 2011-2012, the most factor for doing business are corruption, inefficient government bureaucracy, inadequate supply of infrastructure, policy instability, tax rates, crime and theft, tax regulations, restrictive labor regulations, inadequately educated workforce, access to financing, inflation, government stability/coups, poor work ethics in national labor force, foreign currency regulations and poor public health. Also, poor infrastructures, higher costs among other countries are one of the factors affecting foreign investment. The investment decision factors where the investors base their decisions are Macroeconomic, political, export market, openness, incentives, transparency, legal system, law and order, cheap labor, skilled labor, access to land, communications, transport...

Words: 2010 - Pages: 9

Premium Essay

Effect of Broken Home

...CHAPTER ONE INTRODUCTION 1.1 Background to the study Broken home is a worldwide problem and it occurs in a situation whereby the parent are not able to cope with each other may be as a result of financial constraint or incompactibility of their behavior hence the child live with either of the parents. The parents in order to make bolt ends meet will not be at home most of the time. The child is deprived of love and affection and parent s enlightenment and motivation on how to go about things. The family in this situation becomes less important as an educating an gent where the parents the child is living will have to re – marry , either the man or woman, the child may not be acceptable by the step parent. Thus, such a child becomes a liability instead of an asset. The child may be maltreated in various forms. That is the child may not be given adequate food and money to school and will therefore be exposed to stealing or running away to do meager jobs to feed him or her self. The child at this adolescent age wants independence from the family but attaining adult status and developing as a unique individual needs guidance which may be lacking in this situation . The family could no longer prepare the child for traditional adult role which he/she is expected to play in the society. So the child finds it difficult to formulate values acceptable to his /her own group, to parent and to cultural mores. In the course of adolescent development task, the home is of greatest...

Words: 2603 - Pages: 11

Free Essay

Dhdjd

...pelvic inflammatory disease refers to ascending pelvic infection that involves the upper genital tract. JOYCE.M.BLACK INCIDENCE * PID is estimated that at least 13 in 1000women. * The ages of 14-34 years. * Younger women are at high risk, with two third of all cause accruing in women younger than 25 years. * 1995 us study 11% African American women treated I PID reproductive years. * 1988-11-17%people will suffered. * 1 million people suffer with PID in us every year. * 2,00,000-3,00,000 of them reauise hospitalization. * Situation is worse in developing countries where health care is not readily accessible. * World wide * The total number of new cases find in adults 15-49 years. Estimated to be 498.9 million * 105.2 million cases of C.trachomatism,chlamydia * 106.1 million cases of N.gororuhoeae,nisseria * 10.6 million cases of syphilis. * 276.4 million cases of T.vaginalis,truchoma. * INDIA WIDE * Approximately 12%of women are infertile after single episode of PID....

Words: 1173 - Pages: 5