This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
Journal of Economic Perspectives: Vol. 18 No. 1 (Winter 2004)
JEP Volume. 18, Issue 1 | Next Article
Sign up for Email Alerts Follow us on Twitter
Full-text Article (Complimentary)
View Comments on This Article (0) | Login to post a comment
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
Japan's Financial Crisis and Economic Stagnation
Article Citation
Hoshi, Takeo, and
Anil K. Kashyap. 2004. "Japan's Financial Crisis and Economic Stagnation ."
The Journal of Economic Perspectives,
18(1): 3-26.
DOI: 10.1257/089533004773563412
DOI: 10.1257/089533004773563412
Abstract
We survey the macroeconomic stagnation and financial problems in Japan. The financial sector assessment includes separate analyses of the commercial banks, the life insurance companies and the government's fiscal investment and loan program (FILP). We estimate that the Japanese taxpayer will have to pay at least another 100 trillion yen (20% of GDP) to cover financial system losses. We explain how the current dysfunctional Japanese banking system misallocates funds by keeping many insolvent firms in business. These inefficient firms crowd out potentially profitable ones and worsen macroeconomic stagnation. A sustained macroeconomic recovery requires serious restructuring aimed at stopping this cycle.
Article Full-Text Access
Full-text Article (Complimentary)
Authors
Hoshi, Takeo
Kashyap, Anil K.
Kashyap, Anil K.
Comments
View Comments on This Article (0) | Login to post a comment
