Japan is living in the shadow of its economic miracle. Its stagnation and decline relative to other advanced economies since the early 1990s is a consequence of business and government difficulty in breaking away from once-successful practices. The Japanese postwar economic miracle created the world's second largest capitalist economy. This remarkable performance, in the face of such enormous obstacles, helped solidify, even sanctify, the institutions, methods, and political arrangements associated with the economic miracle. Based upon a decade of research articles distributed in the Japan Economic Institute's weekly report on Japan, In the Shadow of the Miracle analyzes the sources of Japanese growth and the nature and scale of its current economic problems. Chapters examine the steps being taken by Japan's government and business leaders to address the mounting national economic problems and the impact on Japan of the wider Asian financial crisis (1997-99). A final section addresses the question of whether Japan is fundamentally different from other advanced economies.
Arthur J. Alexander was President of the Washington, D.C. based Japan Economic Institute of America from 1990 to the Institute's closing in 2000. He is currently a visiting professor at Georgetown University and has taught at George Mason University, John Hopkins University's School of Advanced International Studies, the University of California, Los Angeles, and the Rand Graduate School.
Chapter 1 An Economy in Transition Chapter 2 The Economy in the Twentieth Century Chapter 3 Japan as Number Three: Long-Term Productivity Problems Chapter 4 Investment Chapter 5 Basic Research and Science Chapter 6 International Capital Flows Chapter 7 The Long-Run Behavior of the Yen Chapter 8 Japan's Foreign Direct Investment in the United States Chapter 9 Foreign Direct Investment in Japan Chapter 10 U.S.-Japan Relations Viewed through Events Data Chapter 11 Structural Change and Adaptation Chapter 12 Deregulation in Aviation Chapter 13 Is Japan an Outlier? Chapter 14 America's Images of Japan Chapter 15 Revisionism Revisited Chapter 16 Long-Term Prospects