Japan Entering a New Era of Capital Efficiency

Japan Economist, Japan Macro Advisors

Takuji Okubo

Japan Economist

Concise and Insightful Analysis on Japan Economy

Japan Macro Advisors

Our mission is to provide a concise and timely analysis on the Japanese economy for the benefit of global audiences. Communication, especially in foreign languages, has always been a weakness for the Japanese, which was fine when Japan's economic might attracted foreign media and various other institutions to study and report on Japan - such days are long gone. In the last two decades, we saw foreign institutions reallocating their resources from Japan to other more exciting parts of the world. As a result, when we read reporting on Japan in foreign media, we sense a subtle but noticeable decline in the depth of understanding what is actually happening in Japan.

Macroeconomics

<p>After 2 years of consistent growth, the Japanese economy contracted in the 2018 January-March quarter. While it is a disappointing result, we think it was a temporary dip and the growth is likely to return in the following quarters. The news should be a wake-up call for Japanese policymakers. Japan has made a progress in reflating the economy, but they should not take continued growth for granted. The BoJ needs to maintain, or better, strengthen its stimulus and clearly communicate its intention…</p>

After 2 years of consistent growth, the Japanese economy contracted in the 2018 January-March quarter. While it is a disappointing result, we think it was a temporary dip and the growth is likely to return in the following quarters. The news should be a wake-up call for Japanese policymakers. Japan has made a progress in reflating the economy, but they should not take continued growth for granted. The BoJ needs to maintain, or better, strengthen its stimulus and clearly communicate its intention…

A Wake-Up Call for Japanese Policymakers.