Japanese Economy

Randall S. Jones is a professional fellow at Columbia University’s Center on Japanese Economy and Business and a non-resident fellow at the Korea Economic Institute. Previously, he served as the Senior Counsellor for East Asia and as Head of the Japan/Korea Desk at the Organization for Economic Cooperation and Development (OECD) in Paris from 2002 until 2019.

"This is an excellent, comprehensive, balanced, readable, up-to-date policy-oriented analysis of the Japanese economy and its fundamental challenges by an outstanding expert. Given Japan’s declining and aging population and labour force, Randall Jones provides sensible, clear-cut, specific policy recommendations to improve productivity and well-being through needed reforms."Hugh Patrick, R. D. Calkins Professor of International Business Emeritus, Columbia Business School"Randall Jones offers the best economic survey on Japan, full of deep policy insights. Reviewing developments from the bubble burst in 1990 to the current COVID-19 crisis, his book provides key challenges and solutions for Japan as a frontier country with a policy agenda for an ageing society with a shrinking population."Kazumasa Iwata, President of the Japan Center for Economic Research, Professor Emeritus Tokyo University"A tour de force! Comprehensive comparisons of Japan with many nations, across many issues, with reliable data. This is the new book of record for Japan’s achievements and missteps in labour, tax, technology, industrial policy, demographics, education, and other policy fields. A cornerstone work for scholars, policymakers, and investors."Robert Alan Feldman, Professor, Tokyo University of Science

• The AuthorPreface and AcknowledgementsAcronyms and Abbreviations From the collapse of the bubble economy to the COVID-19 pandemic: an overview of the Japanese economy from 1990 to 2020 Key challenges facing Japan Part I Labor market reform to sustain economic growth and promote social inclusion Expanding the use of foreign workers and raising the fertility rate to cope with demographic challenges Extending the careers of older persons Promoting employment and leadership opportunities for womenPart II Raising productivity to sustain living standards in the face of a shrinking and aging population Improving the innovation framework to boost productivity Advancing the digitalization of Japan to raise productivity and well-being Reforming the education system and increasing human capital Strengthening the integration of Japan in the world economy to benefit more fully from globalization Accelerating regulatory reform to strengthen competition and boost productivity Upgrading corporate governance to revitalize the Japanese economy Improving the insolvency regime to improve resource allocation Making small and medium-sized enterprises a driver of growth and innovationPart III Improving performance in key sectors Enhancing productivity in the service sector Upgrading productivity in the agricultural sector Financial sector reforms to promote growth and financial stabilityPart IV Macroeconomic policies to promote economic growth and fiscal sustainability Improving the fiscal framework to ensure long-run fiscal sustainability Providing universal high-quality healthcare while controlling spending Consolidation of local government finances in tandem with the central government Reforming Japan’s tax system Monetary policy: unconventional measures to achieve the inflation targetPart V Enhancing well-being Reducing income inequality and poverty to promote social inclusion Reforming the energy sector to achieve green growth and stop climate changePart VI Summary Summary: addressing Japan’s economic and demographic challenges