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 … Paul Krugman, that the Japanese economy is in a liquidity trap. We argue that Japan's economic stagnation stems from a …

In the second part of the 80s, Japan was under political pressure to expand aggregate demand. It followed suit in … Japan became the victim of a misleading concept of global demand management. …