Essay --

â€Å"It was not without justification that the OECD 1979 report on the impact of the newly industrialized countries referred to Japan as the forerunner of the NICs† (Dore, 1986). Over the ages, Japan has developed from a powerful economy in Asia, to the third biggest economy in the world after the United States at number one, and the People’s Republic of China at number two, Japan in fact was the second biggest economy in the world until the year 2010 when China’s Gross Domestic Product (GDP) got higher at $1.337 trillion, more than Japan’s $1.288 trillion GDP. Japan has over the years struggled to fight deflation, which has been a major problem to their economic growth. The growth of Japan’s economy will be looked at from four basic perspectives, the historical miracle of the bubble economy, the current deflationary and debt crises Japan is facing, the direction of the economy right from the economic miracle of the 1950s, and an insight to the fut ure of Japan. Japanese economic growth can be sectioned into three different historic eras namely, the Tokugawa (EDO) period, the Meiji period, and the post-war span. The Tokugawa period also recognized as the Edo period, lasted from 1603 - 1867, during this period, Japan under the rule of Emperor Iyesu Tokugawa became isolated from the rest of the world, as a result of that they enjoyed internal tranquility, political and economic stability, Japan enjoyed a stable economy because of the embargo the emperor embossed banning farmers from involving in other economic activities apart from the agricultural sector, this policy helped boost Japan’s national economy rapidly from the 1680s to the earliest parts of the 1700s. In 1867 the last Tokugawa shogunate was over thrown, less than a year later... ...lumber of stagnation currently hunting them, the persistent escalation in devaluation combined with high administration debt and low cash spending from the people will make it harder for Japan to recover their economic attitude. The Japanese Prime Minister’s policy are basically aimed at restoring the economy of the country, pessimist economists believe a deflation as great as that of Japan will be difficult to reverse, from the look of new spending power policies from BOJ, the Japanese are expected to increase spending power, thereby increasing PPP which will give rise to inflation in the country. The future of Japan’s economy may yet still be regained as a powerful global economy. The future of the Japanese economy depends on the success of Shinzo Abe’s economic strategies, the rate of deflationary cut-down, and good economic policies.