The Japanese Economy: Macroeconomic Overview

1
The Japanese Economy Macroeconomic Overview

• Takeo Hoshi
• School of International Relations and Pacific
  Studies at University of California, San Diego,
  NBER, and TCER

2
Subprime Related Products at Major Japanese Banks
(Billion Yen)

• Tier I capital of major banks at the end of March
  2008
• 25,987 billion yen

3
Nikkei 225 Jul. 2008 Jan. 2009
4
GDP Growth ( from a year ago)
5
Industrial Production (SA, 2005100)
6
Unemployment Rate (, SA)
7
Effective Job-Offers to Applicants Ratio (SA)
8
Proportion of Non-standard Employment ()
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Zombies Hurt Non-Zombies
Employment growth or Investment
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Zombies Hurt Non-Zombies
11
Total Factor Productivity by Industry 1980-2002
(1995100)
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Summary

• Japanese economy back into recession
• Policy response protect employment, help
  (pressure) corporations/banks to keep the
  employees
• Watch out for the return of zombies