Publications
Publications
  • June 2018
  • Case
  • HBS Case Collection

Japan: Deficits, Deflation and Debt

By: Richard H.K. Vietor and Haviland Sheldahl-Thomason
  • Format:Print
  • | Language:English
  • | Pages:33
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Abstract

In April 2018, Prime Minister Shinzo Abe was again in Washington to petition Donald Trump. After years of rapid, export-led growth, Japan had slumped into recession in 1991 and never really recovered. For the past 27 years, its economy has grown at 1.1% annually, plagued by deflation. After several attempts at quantitative easing, Abe had commenced a radical program in 2012 called Quantitative and Qualitative Easing—the first of “three arrows” to repair the Japanese economy. But in early 2018, inflation was still far below the 2% goal, growth had turned negative, and Abe faced the highest debt among the OECD. Together with demographic, energy, and security problems, Abe had his hands full, while President Trump roiled the waters in China and North Korea.

Keywords

Deflation; Debt; Country Analysis; Monetary Expansion; Population Growth; Inflation and Deflation; Borrowing and Debt; Economy; Energy; National Security; Japan

Citation

Vietor, Richard H.K., and Haviland Sheldahl-Thomason. "Japan: Deficits, Deflation and Debt." Harvard Business School Case 718-063, June 2018.

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