Efficiency of Fiscal and Monetary Policy in Japan

EFFICIENCY OF FISCAL AND MONETARY POLICY IN JAPAN

Summary:

The world is experiencing a constant crisis; this crisis always brings a number of changes both in the financial system and productive. For this, leaders must be taken by drastic measures to cope with such crisis, put an order in the economy and bring forward to the country and millions of people.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For more than one decade, Japan´s economy is experiencing a difficult path of economic recovery, from years of uncertainty, of highs lows in their macro indicators and drastic changes in the political sector, so that Japan is a country of great attention to analyze.

This analysis will look like the inefficiency of traditional policies that are the fiscal and monetary policy. That’s why based on graphs and numbers taken from official pages, to see how the economy of Japan was increased or fallen over recent years. Clearly data on monetary policy will be included as: interest rate, inflation, prices and money supply. In fiscal policy discuss why the government increase or under their public spending.

La crisis económica del 2008 en Estados Unidos es un gran punto que debemos de tomar en cuenta en este análisis, ya que gracias a esta crisis es la razón por la cual durante los años que analizaremos el impacto fue muy negativo en la economía de Japón.

The economic crisis of 2008 in the United States is a great point that we should take into account in this analysis, because thanks to this crisis is the reason why over the years that we´ll look at the impact was very negative in to the economy of Japan.

Antecedents

We live in a world where there are constantly changes and that therefore financial institutions have to act quickly and intelligent to be able to contribute to the improvement of the economy of the country and to the welfare of society. If you want to survive and prosper, you have to adapt to these changes quickly, effectively and responsible manner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

As I already mentioned earlier the collapse of the economic in Japan has a reason, and that reason is the crisis of 2008 in the United States. That crisis that was generated by loans that gave people to get a house, "the American dream". Those loans with high default risk. American problem that became global. Why? Due to financial links with other countries (imports / exports, etc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

After analyzing the crisis and its effects in Japan we should know what would be the solutions to not fall back into such global crisis helping other countries to react equally, to motivate companies to increase their competitiveness, focusing on the decisions of financial institutions and make stronger our trade policy.