3. Discuss the main causes of Japan two lost decades, (min 1,000 words)
a. CAUSES
i. Aging Population
ii. Monetary Transfers from Central to Local Governments
iii. Banking Behavior
iv. Excessive Contractionary Monetary Policy
v. Reduced Effectiveness of Fiscal Policy.
vi. High Appreciation of the Yen in the Mid-1990s
vii. Banking Crisis of 1998
viii. Savings mindset of people
ix. Slow Response from Bank of Japan
4. Consequences of the the lost two decades (400 words)
5. the period of subdue economic growth and deflation after the burst of the asset price bubble in the early 1990s. (word count 600)
6. Main macroeconomic policies
• Describe the main dimensions along which Abe sought to change Japanese economic policy
during all its five mandates, giving particular emphasis to what economic objectives he was
pursuing and why.
• Describe the five mandates in detail.
• Which economic objective did each of these mandate relate to and why was it important to work on this?
• What were the steps for each of these mandates?
