Zombie banks

To the South is the Mississippi River. To the North is highway 61. West of Nahant Mash is highway 22. Lastly to the East of the marsh you will see the railroad and the Mississippi.

The shadow banking system can be approximately defined as “the system of credit intermediation that includes objects and activities outside the regular banking system”. Its form is correlated to the way in which the banking sector and the

The Idea of “freedom from fear” has changed since the time of the famous “The four freedoms” speech by the late Franklin Roosevelt in 1941 but only on what the fear is. At the time the speech was given, America had isolationist policies that emerged at the end of World War I. Fears were deeply rooted in another economic decline as the nation had just experienced but also in a new threat. World War II was well under way and Roosevelt felt America should intervene to protect freedom and democracy. Now in 2017, almost 76 years later, the fear is focused on advancement in technologies and liberating people from under oppressive regimes and governments as said in a welcoming speech by President Barack Obama in 2012 .

Today in Japan, a reinvention is necessary. There are many struggles with the young generation, the old generation, and catastrophic events which should be addressed. Specifically, the Japanese economy has been experiencing deflation for the past twenty years. In an article, the results of the deflation were described. The authors said, “Because of fewer available jobs and lower

Additionally, the Greek government has also implement healthcare and pension reforms, banning increases of pensions for at least three years. (Hewitt. Gavin, 2010). On the other hand, the super-national government ECB has also launched the Securities Market Program, which allows the ECB to start buying government bonds in order to fight the crisis. Hoping to able to pump more money

Japan ranks as the third largest economy in the world as of 2010. The GDP at current prices in US dollars in Japan was reported at 5068.06 billion in 2009, according to the International Monetary Fund (IMF). Japan’s resurgence after World War II has however reached an inflection point in yearly 1989 after the burst of Japan’s asset price and real estate bubbles. As can be seen from the graph below, Japan’s GDP has hovered around the same level through more than 20 years of economic stagnation. The GDP’s slow growth has been exacerbated by the world financial crisis of 2008. A major landmark of Japan’s stagnation has been the BOJ’s fight against deflation.

The economy of Japan over the last few decades has had a series of highs and lows. Japan’s post-war growth, due mostly to extremely successful car and consumer electronics industries, was pretty much over by the 1990s. This, combined with the post-war Japanese baby boom and later on drop in fertility rates has led to a significant macroeconomic impacts. Demographic changes have heavily influenced savings, investment, and inward streaming revenue. Policymakers created key errors while struggling to swing the structure of their balance sheets. Economic growth in Japan has been predicted to reach 1.0% in 2017 before slowing down to 0.8% in 2018. At the moment fiscal consolidation (a policy aimed at reducing government deficits and debt accumulation) has stopped, which should aid Japan in dealing with the impact of the appreciating yen. Though there has been a decline in business investment, private consumption is still adding to economic growth. The real GDP (total value of all final goods and services produced within a country’s borders) of Japan has increased at a 1.6% annualized rate since the start of 2016 also in spite of yen appreciation.

“What kept Japan down were repeated macroeconomic policy mistakes” (The New York times, 2008). In fact, the Japanese government’s action was not effective regarding the situation of their economy. The use of monetary policy did not only worsen the effect of the liquidity trap but also create a deflationary pressure. On the other hand, their slow cuts in Bank of Japan nominal interest rate and deflation lead to nominal and real interest rate of different levels. Even nominal interest rate at zero, real interest rate has been positive. Fiscal policy was inadequate to increase demand and output but led to deficits and accumulating government debt.

The adoption of the euro led many EMU countries of different creditworthiness receiving similar, very low interest rates for government bonds and private credits during the years preceding the crisis due to the inherent belief in investors that the euro would induce endogenous economic convergence in the Eurozone. In 2005, ECB President Jean-Claude Trichet claimed that yields on Eurozone sovereign bonds were driven overwhelmingly by “euro-area-wide shocks” and there was only a small effect from

Abstract What is the European debt crisis? As the head of the Bank of England referred to it in October 2011, it is “the most serious financial crisis at least since the 1930s, if not ever.”1 In fact, the European debt crisis is the shorthand term for the region’s struggle to pay the debts it has built up in recent decades. Five of the region’s countries – Greece, Portugal, Ireland, Italy, and Spain – have, to varying degrees, failed to generate enough economic growth to make their ability to pay back bondholders the guarantee it’s intended to be. Although these five were seen as being the countries in immediate danger of a possible default,

The topic of this dissertation is to discuss the monetary policy adopted in bubble economy period of Japanese. As Japanese economics is a specific example around the world. The Japanese government adopted many effective ways to revitalize the economy with the result that its economy rose abruptly after the World war II. However, because Japan entered a liquidity trap around 1990s, and experienced a “Lost Decade” (Hiyashi and Prescott, 2002), the government experienced many economic problems such as of slow growth, deflation, and continues nethermore output (Daniel, 2009) In this dissertation, the following parts will be given: Literature review, data description, test result discussion and conclusion.

Although a commonly accepted view is that the hidden budget deficit in Greece is the beginning of the European sovereign debt crisis, the real causes of this economic crisis can be various. To reveal the whole event, a comprehensive review of the background is

Throughout time, issues with equality have denied groups some of the most basic human rights. A common example of this is the right to one’s own body. The statement that people have the rights his/her own body is very broad and rightfully so. It encompasses things ranging from what clothing they want to wear to whom they have sex with and even what gender they want to be. Within the film Difret, the ideas of gender equality, rape culture, and the right to one’s own body are highly prevalent. They are addressed through the use of a real story about a child who was abducted, raped, and fought to regain her freedom twice - once from her captors and then from the legal systems.

Japan saw its nation change in 1990 when the Japanese economy stagnated. Indeed, between 1991 and 2003 the Japanese economy only grew 1.14% (of GDP) every year. This is not enough when compared to other developed countries. (Yuji Horioka, 2006). Alexander, A. J. (2000) states the facts that from the first quarter of 1990 to the first quarter of 2000 the annual increase in real gross domestic product per capita barely exceeded 1 percent, making it very clear that Japan was in a recession. This is all the

Japan enjoyed an Asia’s economic miracle that the world witnessed a country that started out poor and had become the second-largest industrial power during the postwar era. However, a large bubble economy had been irritated by the growth, especially in the stock and asset price markets, the economy suffered a near catastrophic crash caused by speculative mania(Hall and Von Wiesen, 2014). The Japanese economy has stagnated after the collapse of bubble economy. The economic situation has been in a wide deflation. In the last two decades, Japanese government took several measures to solve the deflation problem and spur the economy. There are fiscal expansion, conventional monetary measures, Yen depreciation, bank recapitalisation, Quantitative Easing, and three arrows of Abenomics. But the situation did not change much, the balance sheet of the country shows continuous economic recession.