The Japanese Economy

The volume aims to increase understanding of Japan. It will serve as a resource for policymakers, academics and students of economics and public policy. As a front-runner in population ageing, the analysis of Japan and its policy recommendations are highly relevant to other countries that are, or will be, facing similar challenges.

Japan has many unique strengths, but it also faces numerous challenges, many of which are related to population ageing. Rapid demographic change is projected to reduce Japan's population by one-quarter by 2060 while increasing the share of elderly people from 29% of the total population to 38%, which would be the highest share among advanced countries. This book analyses the Japanese economy and the challenges it faces, and suggests policies to promote wellbeing, high living standards, fiscal sustainability, social inclusion and environmental sustainability. The book's 24 chapters focus on key aspects of Japan's economy, including the labour market, innovation, education, women in the workforce, corporate governance, small and medium-sized enterprises, the service sector, agriculture, fiscal and monetary policy, income distribution and policies to address climate change.

The volume aims to increase understanding of Japan, the world's third-largest economy and a key player in the global economy. It will assist policymakers and serve as a resource for academics and students of economics and public policy. As Japan is a front-runner in population ageing, the book's analysis and policy recommendations are highly relevant to other countries that are, or soon will be, facing similar challenges.

Inhalt

The Author

Preface and Acknowledgements

Acronyms and Abbreviations

1. From the collapse of the bubble economy to the COVID-19 pandemic: an overview of the Japanese economy from 1990 to 2020

2. Key challenges facing Japan ** Part I Labor market reform to sustain economic growth and promote social inclusion

3. Expanding the use of foreign workers and raising the fertility rate to cope with demographic challenges ****

4. Extending the careers of older persons

5. Promoting employment and leadership opportunities for women ** Part II Raising productivity to sustain living standards in the face of a shrinking and aging population

6. Improving the innovation framework to boost productivity

7. Advancing the digitalization of Japan to raise productivity and well-being

8. Reforming the education system and increasing human capital

9. Strengthening the integration of Japan in the world economy to benefit more fully from globalization

10. Accelerating regulatory reform to strengthen competition and boost productivity

11. Upgrading corporate governance to revitalize the Japanese economy

12. Improving the insolvency regime to improve resource allocation

13. Making small and medium-sized enterprises a driver of growth and innovation ** Part III Improving performance in key sectors

14. Enhancing productivity in the service sector

15. Upgrading productivity in the agricultural sector

16. Financial sector reforms to promote growth and financial stability ** Part IV Macroeconomic policies to promote economic growth and fiscal sustainability

17. Improving the fiscal framework to ensure long-run fiscal sustainability

18. Providing universal high-quality healthcare while controlling spending

19. Consolidation of local government finances in tandem with the central government

20. Reforming Japan's tax system

21. Monetary policy: unconventional measures to achieve the inflation target ** Part V Enhancing well-being

22. Reducing income inequality and poverty to promote social inclusion

23. Reforming the energy sector to achieve green growth and stop climate change ** Part VI Summary

24. Summary: addressing Japan's economic and demographic challenges