Japan: Betting on Inflation? Harvard Case Solution & Analysis

The case targets the challenges confronting Prime Minister Shinzo Abe at the conclusion of 2013, a year after he's been in office. It also gives a synopsis of Japan's earlier economic operation, focusing primarily on the time after it suffered real estate crash and a stock market in 1989-1992. During his initial years designated in office, Abe launched three sets of policies sketched out to improve the growth rate that was Japanese and to reverse the deflation that had plagued Japan since around 2000.

Japan Betting on Inflation Case Study Solution

The very first of this three-pronged approach consisted of appointing a central bank governor who committed himself to raising the inflation rate and who greatly expanded the Bank of Japan's balance sheet in an attempt to accomplish this. The next entailed a fiscal policy plan whose first push was expansionary, but which also sought to reduce future budget deficits. The last one involved a run of microeconomic reforms targeted at enlarging GDP and labor productivity.

These comprised initiatives at inflating female labor force participation to recompence for Japan's aged population, reforms of the electric power sector aimed at declining electricity costs, and efforts  to market the "health and life long sector.By discussing the foreign policy challenges, including Korea's as well as China's reactions to visits by Japanese officials to the Yasukuni shrine of Abe, the case ends.

PUBLICATION DATE: January 18, 2014 PRODUCT #: 714040-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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