Japanese Economy

The Japanese economy is the world’s third-largest mature economy and is very much export-oriented. The financial center of Japan is Tokyo.

Being able to avoid significant investments in defense spending, the Japanese economy flourished post-war. But in the later part of the 1980s, a bubbling domestic real estate market and an overheated stock market caused the Japanese economy to crash by the early 1990s. It was a significant economic bubble that came to an end, and the country ran up excessive amounts of public debt in order to maintain social services and to keep Japan’s economic activity from turning negative.

For the most part, Japan does not have a great deal of resources with which to feed its economy. The Japanese economy has proven global leadership in engineering, research and development, and manufacturing quality products for worldwide distribution.

The current monetary policy in Japan is expansive and considered extremely accommodative to capital markets. It’s unclear, however, whether this pace of monetary stimulus can be maintained into 2015.


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