Japan And The United Kingdom

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Japan and the United Kingdom have long been world powers and are now in the top 10 biggest economies of the world; being third and fifth in the 2014 rankings. (Centre for Economics and Business Research. 2015) However, both countries have been hit by a great economic crisis that changed their economies deeply. Though it occurred on different time frames; 1991 to 2000 for Japan and 2007 to 2012 for the United Kingdom, a lot of similarities can be found between the causes that started both crises as well as between the development of these crises. However, not everything is comparable so we can wonder, to what extent are the Japanese recession of the 1990s and the Great Recession of 2007-2012 similar? In order to answer this question and get a full understanding of both periods, we will first look at the causes of the Great Recession, then have a look at the causes of the Japanese lost decade and finally, analyse the similarities and differences between the two crises. Japan saw its nation change in 1990 when the Japanese economy stagnated. Indeed, between 1991 and 2003 the Japanese economy only grew 1.14% (of GDP) every year. This is not enough when compared to other developed countries. (Yuji Horioka, 2006). Alexander, A. J. (2000) states the facts that from the first quarter of 1990 to the first quarter of 2000 the annual increase in real gross domestic product per capita barely exceeded 1 percent, making it very clear that Japan was in a recession. This is all the
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