About The Janpanese Bubble Economy (1 Viewer)

[linxicm]

Hello, eveyone, Can anyone tell me what factors cause the Janpanese Bubble Economy?

Thanks!!

 

[monique66]

not to sure, but it could be something to do with their high national savings because when the govt. needs to use monetary policy to curb inflation they can do little because as japanese are high savers it has little effect. What i mean to say if that in Australia we are net borrowers we tend to be heavily influenced by a change in i/rates (lets say when they are higher). The rate of consuption and investment will fall because it becaes increasingly difficult to service this debt. However, in Japan you have the reverse situation, which i think what causes their bubble economy...but i could be wrong...

 

[L]

Fine, I will ask the teacher tomorrow and tell u later....I think something about the deplation and appreciation of Janpanese dollar.... not sure....