Topics on Modern Japanese Economy
This course surveys issues related to the Japanese economy. A particular emphasis is put on understanding economic troubles that Japan started to face at the end of the last century, including macroeconomic stagnation, deflation, aging and population decline, seemingly unsustainable fiscal policy, extremely low interest rates, and stagnating wages in the tight labor market. Many of those issues are now observed in other advanced economies and pose challenges to the standard economic theory. The course explores how much we can use the standard tools in economics to understand the issues in the Japanese economy and tries to derive general lessons that would apply to other economies that are or will be experiencing similar issues.