How The Economy Of Japan Could Predict The Next Decade: Stagnation

The video discusses Japan's economic challenges starting in the 1990s, marked by deflation and a banking crisis. It explores the impact of globalization, particularly China's rise, and Japan's aging population on its economy. Despite efforts like lowering interest rates and implementing quantitative easing, Japan struggled with low inflation. The video questions whether Japan's experience can inform other economies facing similar issues.

What economic phenomenon did Japan experience in the 1990s that led to a decrease in consumer spending?

• Deflation

• Hyperinflation

• Inflation

• Stagflation

How did the aging population in Japan affect its economy in the early 2000s?

• Increased birth rates

• Reduced burden on social programs

• Increased burden on younger workers

• Decreased life expectancy

What was one of the main reasons Japan struggled to compete in international markets in the 2000s?

• Decreased demand for Japanese products

• Lack of technological advancement

• High labor costs

• Competition from China

What strategy did the Japanese Central Bank use to try to stimulate the economy?

• Increasing taxes

• Raising interest rates

• Quantitative easing

• Reducing government spending

Why did quantitative easing not lead to significant inflation in Japan?

• The strategy was too new

• The economy was already growing

• It was not implemented effectively

• Inflation remained stubbornly low