Regulatory and Structural Reforms: The Battle with a Bureaucracy

Abstract

As for Japanese economy, the 1990s after the collapse of the "bubble" economy will be called the "Lost Decade" even in today for "all 20 lost years" again. The long slump of Japanese economy is the result of the ability not to respond to globalization. That is, it is in the delay in reform of systems made unchanging in the thorough cost competition.

　Even if unlimited money market relaxation is able to cause inflation, the competitive power of a company is not necessarily recovered. There is no policy in revival of Japanese economy besides recovering the global competitiveness of a company and realizing expansion of the Gross Domestic Product (GDP).

　It seems that realizing conversion of the economy and industrial structure corresponding to change of market structure is a necessary condition for Japanese economy to escape from a long-term downturn.