In the post-war years and into the 80s, no economy could match Japan’s for sheer speed and growth. Since then, however, Japan has struggled to overcome slower growth and stubborn deflation.
The country’s struggling economy even seems to be defeating Prime Minister Shinzo Abe’s once lauded ‘Abenomics’ stimulus program.
Worse still, there doesn’t seem to be a clear reason why the good ship Japan Inc. is listing.
One favored explanation is that Japanese consumers are clinging to every yen, fearful of the future. As a result, Japan’s companies and government get less revenue and taxes.
Some financial experts disagree. The issue, they say, is that Japan finds itself in the grips of a perfect, tech-generated storm. A situation made worse by central institutions failing to fully appreciate the magnitude of what is happening.
“Exponential technologies are disrupting industries, economies and central banks. It actually started decades ago,” says Brian Barnier who is head of research at …