Two kinds of view about the recent stagnation of the Japanese economy have been particularly popular. The first adopts … a 'monetary' perspective, arguing that Japan has fallen into a liquidity trap from which only unconventional monetary … policy can save it. The second maintains that a large part of Japan's macroeconomic difficulties is structural and related to …

to the forecasts, extrapolate to expectations about their personal economic circumstances and adjust their consumption …

response to the forecasts, extrapolate to expectations about their personal economic circumstances and adjust their consumption …