The Japanese economic decline of the 1990’s can be attributed to several things: poor growth performance, serious fiscal problems, weak labor market conditions, weakening of the trade and external accounts of the country, and excessively loose stance of macroeconomic policies.
The Japanese GDP growth in early 1990’s was almost zero implying no new money in the economy and an inevitable recession.
Large and growing public debt to GDP ratio, in 1992 it
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