Japan: Deficits Demography and Deflation Harvard Case Solution & Analysis

By 2005, the debt of Japan rose to 163% of GDP. For more than ten years, the government has run huge deficits, trying unsuccessfully to stimulate economic growth. Interest rates, meanwhile, was zero for years. But with slow growth and banks in a crisis, nothing has worked very well until some recovery in 2004. Now the government is trying to restore its financial losses in the ongoing slow growth and a huge pension and health care obligations of the population that is rapidly aging. Hezio Takenaka, minister of economy and privatization of postal, faced with the introduction of the agenda -. To restart the economy while reducing the deficit and reforming social security "Hide
by Richard HK Vietor Source: Harvard Business School 23 pages. Publication Date: July 22, 2005. Prod. #: 706004-PDF-ENG

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