JAPAN’S ANNUAL MONEY SUPPLY GROWTH RATE

Over the past decade, the Fed has responded fairly to inflation and unemployment. According to the Federal Reserve (2017), between late 2008 (the era of the Great Recession) and October 2014, the Federal Reserve purchased longer-term mortgage-backed securities and notes issued by certain government-sponsored enterprises, as well as longer-term Treasury bonds and notes. In essence, lowering the level of longer-term interest rates and improving financial conditions (the Fed.com, 2017).

The United States of America is one of the world leading economic powers in the world. The question is, how does the Unites States compare to other nation powers.Australia ,Cananda , China and Britain are just a few of the nation powers that can compare to the United states. This report will focus more one of the main rivials to the United States and that is Japan. Here is just a sample of Japans Numbers for 2004 compared to the United States. Unite States GDP growth is 4.30% ,unemployment is 5.60% and Inflation Rate is 1.90%. In Japan the GDP growth is 4.50% , unemployment is 4.60% and Inflation Rate is -.04%. . I think this is an important perspective because we really do live in a global

In the 1900s, Japan faced a lot of economic obstacles. Due to its location on four moving tectonic plates, Japan experiences earthquakes more often than most other countries, Banks, at the time, struggled to keep economic activity stable after earthquakes and even attempted to regulate the flow by granting companies the ability to sell their products without having a drastic change in price. Following the discussion of earthquake bills and such, news was brought to the attention of the Japanese government that a bank in Tokyo had finally gone bankrupt. This sent many into a frenzy trying to get a hold of their money from banks, and in turn, many banks closed. However, this Japanese bank was indeed, not bankrupt, it was only struggling,

“The single greatest contributor to financial crises is the Federal Reserve manipulating interest rates in ways that distort the true price of capital.” (Kibbe, 2011) The distortion of numbers created a false sense of overinvesting when in actuality they are responding to false economic signals. Just like the Great Depression, the stock market was not the only thing that was effected, unemployment doubled and debt rose from 66% to 103%. The housing market also took a hit falling 30%.

Japan’s unemployment rate of about 4% opposed to the U.S. unemployment rate of close to 10%. Even the financial debt to GDP ration is an advantage, and debt in the private sector has not increased unlike the U.S. and European countries, (Time, 2009). In addition, since Japan is a huge exporter and with the U.S. demand going downward, the international balances and growth declined especially as the dollar value dropped and the yen surged. •

Over the years, Japan has been working on advancing their economy since post-World War II. They now have a very strong work ethic, high resolution technology and a very comparatively small defense allocation, one percent of the gross domestic product. Two key characteristics are the interlocking structures of manufactures, suppliers, and distributors, and guarantee of employment for a substantial portion of the urban labor force (CIA,2017). With natural resources of Japan becoming inadequate, they reliant on imported raw materials and resources especially since the complete shutdown of nuclear reactors

First being a balanced budget, followed by suspension of new loans from the Reconstruction Finance Bank (this source of supply of money was identified as the root cause of inflation), and lastly, reducing as well as completely eliminating subsidies. The above-mentioned policies were identified to aid in accelerating the Japanese economy. Dodge’s policies caused problems along the way in its implementation but it created a path for recovery without the help of America. The Japanese were encouraged to economize and accumulate capital through such a policy.

Something having no current or flow and often having an unpleasant smell defines the word stagnant. The Japanese economy has been stagnant for about two decades now. There are many reasons for this ‘unpleasant smell’. Firstly, the fiscal policy in Japan, the surplus in savings, its once economic bubble power and the policy management in Japan put an end to any flow that there once was. Secondly, the Global flow and structural impediments are a cause of the lack of current. The liberal Democratic Party and Vested Interest Groups and also the monetarist explanation come into play. Looking at these such topics closely give a better look and realization of Japans stagnant economy.

The graph of economic growth look so nice and strong. People were being very optimistic about the economy, making Japan in the emotion of euphoria, which started a trend of investing.

The financial crisis from 2007 to 2009 may well be called the financial engineering and corporate authority gone wild. The birth of the financial crisis can be draw back to the property asset bubble in the US between 1997 and 2006. This financial bubble was enabled by a badly regulated subprime mortgage industry and the assumption that property prices would continue to

The statistics show that the growth of the economy in Japan comes out very good, but it is a

The deregulation of financial markets catalysed by Globalisation worldwide has impacted on the amount of trade within the Japanese economy beneficially allowing easier access to foreign currencies, facilitating a higher flow of goods between nation, by relaxing laws that severely prevented foreign buying of currency, and floating the yen. These drivers have helped boost Japan's trade and recovery from its recession. Technology has allowed finances to be traded and communication to be near to instantaneous. This has increased dramatically the amount of FDI into Japan largely thanks to the numerous strategies the Japanese government has taken to promote economic growth and hence development. Finance and Foreign Direct Investment (FDI) have increased as a direct result of globalisation doubling from $63 billion in 2001 to $144 billion in

The onset of Super Endaka in 1995 summed up to an already existing situation of global recession (1991), with price pressures, posted production and sales declines. Moreover, trade barriers in Europe prevented Japan's firms to expand and compensate for the US losses, where the price effects of yen appreciation were most severe. This time, the challenge posed by the new exchange rate shift was even harder than the first one.

Japan ranks as the third largest economy in the world as of 2010. The GDP at current prices in US dollars in Japan was reported at 5068.06 billion in 2009, according to the International Monetary Fund (IMF). Japan’s resurgence after World War II has however reached an inflection point in yearly 1989 after the burst of Japan’s asset price and real estate bubbles. As can be seen from the graph below, Japan’s GDP has hovered around the same level through more than 20 years of economic stagnation. The GDP’s slow growth has been exacerbated by the world financial crisis of 2008. A major landmark of Japan’s stagnation has been the BOJ’s fight against deflation.

The consumer price index has remained at 103.9 index points in October from the index points of September. The consumer price index for Japan had an average of 72.89 index points form 1957 until 2015, reaching the all time high of 104.50 index points in October of 1998 and a record low of 18 index point from February of 1957.