Ideas for Reviving the Japanese Economy
Kiyohiko Nishimura
Professor, Graduate School of Economics, university of Tokyo
We are entering a phase where it is extremely difficult to judge the economy. For the first time since the "ten lost years," companies are steering toward positive investment. Unlike in the past when lavish government spending ended literally in a "boost to the economy," there are definite signs of an autonomous recovery. Of course, that does not mean a conventional "economic recovery." Reflecting the fact that structural adjustment of the Japanese economy is moving at a snail's pace, the trend toward recovery is limited to fields in which Japan is competitive in the global market economy. In fields with a legacy of debt from the past, there has been a succession of bankruptcies that run counter to "economic recovery." This is symbolized by the fact that the dramatic recovery of stock prices in the first half of 2000 did not result in real estate prices hitting bottom, and stock prices are again falling.
Growing risk of downward slide in the U.S. economy which is the engine driving the world economy
Slight irregularities can be seen in the U.S, economy, when the world is in fact dependent on the high, inflation-free growth of the U.S. economy.
