Final month, Japan’s central financial institution raised rates of interest for the primary time in 17 years. That may be a actually huge deal, as a result of it signifies that one of many spookiest tales in fashionable economics would possibly lastly have an ending.
Again within the Eighties, Japan carried out one thing of an financial miracle. It reworked itself into the quantity two financial system on the planet. From Walkmans to Toyotas, the U.S. was awash in Japanese imports. And Japanese corporations went on a spending spree. Sony purchased up Columbia Footage. Mitsubishi turned the brand new majority homeowners of Rockefeller Middle.
However within the early Nineteen Nineties, all of it got here to a sudden halt. Japan went from being one of many quickest rising nations on the planet to one of many slowest. And this financial stagnation went on and on and on. For many years.
On this episode, the unnerving story of Japan’s Misplaced A long time: How did some of the superior economies on the planet simply fall down in the future — and never be capable of stand up? Japan’s predicament modified our understanding of what can go mistaken in a contemporary financial system. And gave us some new instruments to try to take care of it.
This episode was hosted by Jeff Guo. It was produced by Emma Peaslee and engineered by Cena Loffredo. It was edited by Molly Messick. Alex Goldmark is Planet Cash’s govt producer.
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Music: NPR Supply Audio – “Haunted Fairground,” “Flawed Conclusion,” and “Unusual Tango”
