Business Cycle: How’s Japan Doing?

Published By: Shamma Al Marri
December 27, 2016

After the second world war, Japan amazed the world with their miraculous economic growth, they expanded, making their way to the top and having the second largest GDP in the world. Here’s what Japan faced after that:

A helper or an aggravator? 

The growth was mostly because of the help of their newly trading collaborates the U.S. After Japan’s recovery, the U.S made a quite challenging move, they stopped switching dollars into gold, which made it difficult for Japan the export to other countries, they had to raise their yen compared to the U.S dollar. 

Other oil crisis!

After yet another war, that is the Middle East war, Japan fought with an oil crisis, prices increased. To overcome this inflation, Japan focused on saving energy.

Another boom?

Japan’s economy was taking the lead again and doing great. Although, prices were getting very high, so were the stocks! Which is a good thing. Many participated in the stock market, very few were unemployed, and the ones who were having high profits.

There’s only one way, down.

Japan depended on land very much that in the 1999’s, when stock prices fell,  causing a decrease in the prices of land too, Japan’s economy entered into a recession.

Being the quick action taker, Japan recovered once again. However, another problem was created which put them back where they were, in recession. During the mid- 2000, there was a decline in technology demand which was linked to the exports. Since the demand decreases the exports of Japan to other countries decreased.

The economy expands after reaching a trough.

Japan reached the trough in March 2009, they had faced a financial crisis. They tried to focus on the foreign demand and trading with other countries to improve, which worked! Once again, Japan recovers.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s