Japan - The Fading Economy: The Great Stagnation

Japan's economy, once a global powerhouse, has stagnated over the past 30 years due to low birth rates, an aging population, and increased competition from other Asian economies. The Japanese government has employed monetary and fiscal policies to stimulate growth, including lowering interest rates and implementing quantitative easing. However, these measures have led to deflation and a significant national debt. The situation highlights the challenges of maintaining economic growth in a rapidly changing global market.

What are some of the main reasons for Japan's economic stagnation over the past 30 years?

• Low birth rate and aging population

• Rapid technological advancements

• Strong competition from European economies

• High birth rate and low life expectancy

How does lowering interest rates affect consumer spending in an economy?

• It decreases consumer spending

• It causes consumers to save more

• It increases consumer spending

• It has no effect on consumer spending

What is a potential risk of maintaining very low interest rates for too long?

• Deflation

• High inflation

• Economic boom

• Increased savings

What is the primary goal of quantitative easing?

• To increase interest rates

• To combat deflation

• To increase the national debt

• To reduce government spending

What is the main function of a central bank according to the video?

• To ensure economic growth

• To reduce national debt

• To increase employment

• To maintain currency stability

How can fiscal policy stimulate economic growth?

• By increasing taxes and reducing government spending

• By lowering taxes and increasing government spending

• By reducing the national debt

• By maintaining high interest rates

What is a significant concern regarding Japan's national debt?

• It is lower than the USA's national debt

• It has no impact on economic growth

• It is almost 2.5 times Japan's GDP

• It is entirely composed of foreign loans