Japans prolonged recession over the last five years has provided the impetus for regulatory reform and industry restructuring. Historically, the flow of Foreign Direct Investment (FDI) into Japan has been small for an economy of its size. The high degree of vertical integration and relatively...

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...

Japan’s prolonged recession over the last five years has provided the impetus for regulatory reform and industry restructuring. Historically, the flow of Foreign Direct Investment (FDI) into Japan has been small for an economy of its size. The high degree of vertical integration and relatively...