Paul Krugman, that the Japanese economy is in a liquidity trap. We argue that Japan's economic stagnation stems from a …Japan has suffered from sluggish economic growth and recession since the 1990s, a phenomenon dubbed "Japan's Lost … future and they have been concerned by Japan's long-term recession. This paper will address why Japan's economy has stagnated …

through fiscal policy or by running a persistent trade surplus. -- Japan ; growth ; stagnation ; liquidity trap ; public debt … period of stagnation. The model has multiple steady-growth solutions when the labour supply is highly elastic, and government …, and a combination of high saving rates and slow population growth account for the stagnation of the 1990s. This …

Why do advanced economies fall into prolonged periods of economic stagnation, particularly in the aftermath of credit … that financially more deregulated economies are more likely to experience persistent stagnation. In the short run, credit … the macroeconomic developments in Japan during its lost decades and other advanced economies before and during the Great …

, slumps characterized by unemployment and weak growth. We refer to these episodes as stagnation traps, because they consist in … the joint occurrence of a liquidity and a growth trap. In a stagnation trap, the central bank is unable to restore full … restoring growth can successfully lead the economy out of a stagnation trap, thus rationalizing the notion of job creating …