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Case
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Reference no. 9-718-063
Published by: Harvard Business Publishing
Originally published in: 2018
Version: 27 June 2018
Length: 33 pages
Data source: Published sources

Abstract

In April 2018, Prime Minister Shinzo Abe was again in Washington to petition Donald Trump. After years of rapid, export-led growth, Japan had slumped into recession in 1991 and never really recovered. For the past 27 years, it's economy has grown at 1.1% annually, plagued by deflation. After several attempts at quantitative easing, Abe had commenced a radical program in 2012 called Quantitative and Qualitative Easing - the first of 'three arrows' to repair the Japanese economy. But in early 2018, inflation was still far below the 2% goal, growth had turned negative, and Abe faced the highest debt among the OECD. Together with demographic, energy and security problems, Abe had his hands full, while President Trump roiled the waters in China and North Korea.
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Abstract

In April 2018, Prime Minister Shinzo Abe was again in Washington to petition Donald Trump. After years of rapid, export-led growth, Japan had slumped into recession in 1991 and never really recovered. For the past 27 years, it's economy has grown at 1.1% annually, plagued by deflation. After several attempts at quantitative easing, Abe had commenced a radical program in 2012 called Quantitative and Qualitative Easing - the first of 'three arrows' to repair the Japanese economy. But in early 2018, inflation was still far below the 2% goal, growth had turned negative, and Abe faced the highest debt among the OECD. Together with demographic, energy and security problems, Abe had his hands full, while President Trump roiled the waters in China and North Korea.

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