Japan Archives - Economy Watch

Does Japan’s Democracy Have Room for Women and Children?

A wave of political activism has animated East Asian politics: Taiwan’s Sunflower Student Movement in 2014, South Korean 2015 street protests against President Park’s new labour law, and protests in Japan in 2015 against Prime Minister Abe’s security bills. Youth activism was common to all these movements. Facing challenges in a stagnating economy, the younger generations have developed a deeper political awareness from a sense of marginalisation from political decision-making processes.

Is Japan at the End of the Monetary Rope?

Japan’s monetary gamble and Abenomics are approaching the end of the road. Neither Brussels nor Washington is immune to the adverse consequences of Tokyo’s monetary exhaustion, says Dan Steinbock.

Recently, Japan’s second quarter GDP growth was revised up to 0.7 percent, after four consecutive quarters of stagnation. However, don’t set your hopes too high.

Mixed Results in the Rest of Asia over the BOJ’s Policy Decisions

Like other central banks in advanced countries, the Bank of Japan (BOJ) adopted an unconventional monetary policy after the 2007–2009 global financial crisis (GFC). After Prime Minister Abe advocated the new policy regime, Abenomics, the BOJ became highly aggressive in its unconventional policy (see, for example, Fukuda [2015] for details). On 4 April 2013, BOJ Governor Kuroda introduced quantitative and qualitative monetary easing (QQE) and committed to achieve a 2% inflation target in 2 years.

Encouraging Japanese Board of Director Diversity

The current potential growth rate of the Japanese economy is estimated to be less than 0.5 percent. Given Japan’s rapidly declining working-age population, it will be critical to increase the labour participation rate of women and elderly people in order to promote economic growth. The ‘new three arrows’ of Abenomics stress the need for Japan to ensure the ‘dynamic engagement of all citizens’ in the economy.

Japan’s Double Economic Whammy

Background

In February 2016, the Bank of Japan (BOJ), in order to reach a 2% inflation target, initiated a negative interest rate policy by increasing massive money supply through the purchase of long-term Japanese government bonds (JGBs).

This policy flattened the yield curve of JGBs. Banks started to purchase government bonds less frequently, because of the negative yield for both short-term government bonds and even for long-term government bonds up to 15 years.

Japan’s Government Accelerates Market-Oriented Agricultural Reforms

In 2015, the government of Japanese Prime Minister Shinzo Abe spearheaded a series of unprecedented amendments to the 1947 Agricultural Cooperative Law. These changes will loosen the stifling controls of the national and prefectural organisations of Japan Agricultural Cooperatives (JA) over local co-ops and farmers.

Japan’s GDP Disappoints

The US dollar closed the pre-weekend session well off its lows that were seen in response to the disappointing retail sales report. It has been unable to sustain the upside momentum, and as North American dealers prepare to return to their posts, it is trading lower against most of the major currencies. The notable exceptions are the Scandi-bloc, which are consolidating last week’s gains, and sterling, which remains pinned near $1.29.

Abe Delivers Unimpressive, but Needed, Fiscal Policy

The Japanese government is delivering the other half of its fiscal policy today. Earlier, Abe decided to postpone the sales tax hike for the second time. Today, the cabinet approved a JPY28 trillion (5.6%) of GDP package.

Japan Gender Gap Scorecard

Women in Japan voted and stood for office for the first time on 10 April 1946. It was the country’s first postwar election and the first election after the Japanese government amended the Electoral Law to include women. Of the 79 female candidates, 39 were elected to Japan’s national parliament, the Diet.

Seventy years on, what is the state of gender relations in Japan? What issues now stimulate feminist campaigns and activism?

You Say You Want a Constitution (Change)

Following the 10 July upper house elections the Abe government now has the two-thirds majority in both houses of the Diet necessary to pass constitutional amendments. So what are the likely consequences?

Four years ago, Japan’s ruling Liberal Democratic Party (LDP) published a set of proposals for changing the nation’s postwar constitution. Like its earlier draft changes of 2005, they failed to muster enough support to be turned into legislation, let alone come to a vote.