Last week I discussed Japan's lost decades, and how the underlying cause of their recession is that a larger proportion of economic output is being taken by retirees, leaving less to be provided as pay and thus as incentives for those not yet retired to work ( Read more... )

The ongoing Japanese recession has puzzled economists for decades. Here's the explanation. Part 1 of 2.The 1990s were the "lost decade" in Japan. The country went into recession, unemployment reached unheard of highs by Japanese standards, especially among youth, and deflation set in. This did not end with the end of the 1990s, however - the ( Read more... )