The system that sacrificed everything in the pursuit of economic growth has proven too rigid following the collapse of the Japanese economy in 1990 and a programme of deregulation, reform and restructuring is now a necessity
Not so long ago, Japan's economic model and management techniques were the envy of the western world. Japanese products flooded western markets and Japanese asset prices rose precipitously. In late 1989, the market capitalisation of the Tokyo Stock Exchange stood significantly higher than that of the New York Stock Exchange and the grounds of Tokyo's Imperial Palace were supposedly worth more than the whole state of California. Then, in early 1990, the Bank of Japan finally decided enough was enough and, in an attempt to cool down the economy, decided to raise interest rates. The rest is hi...
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