Japan’s economic performance during the 1990s was disappointing due to the prolonged deflationary adjustment that occurred after the economic bubble burst in 1990-91. Productivity suffered during this time, reflecting labor market rigidities and over-investment in the late 1980s. Though growth surged from 2003-07 thanks to demand from China and other emerging markets, the global financial crisis of 2008-09 and the 2011 earthquake and tsunami dealt a significant blow. Japan’s status as an ...
