Cover IMF Working Papers
Buy Book in Print
“Lost Decade” in Translation - What Japan’s Crisis could Portend about Recovery from the Great Recession
Author:
Kiichi Tokuoka
Search for other papers by Kiichi Tokuoka in
Current site
Google Scholar Close
,
Mr. Murtaza H Syed
Search for other papers by Mr. Murtaza H Syed in
Current site
Google Scholar Close
, and
Mr. Kenneth H Kang
Search for other papers by Mr. Kenneth H Kang in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2009: Issue 282
Language:
English
Publication Date:
01 Dec 2009
DOI:
https://doi.org/10.5089/9781451874273.001
ISBN:
9781451874273
ISSN:
1018-5941
Pages:
40
Keywords:
WP; public funds; financial crisis; central bank; banking system; money market; zero interest rate policy
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (772.8 KB) Download Epub
Is the recovery from the global financial crisis now secured? A strikingly similar crisis that stalled Japan's growth miracle two decades ago could provide some clues. This paper explores the parallels and draws potential implications for the current global outlook and policies. Japan's experiences suggest four broad lessons. First, green shoots do not guarantee a recovery, implying a need to be cautious about the outlook. Second, financial fragilities can leave an economy vulnerable to adverse shocks and should be resolved for a durable recovery. Third, well-calibrated macroeconomic stimulus can facilitate this adjustment, but carries increasing costs. And fourth, while judging the best time to exit from policy support is difficult, clear medium-term plans may help.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund