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Japan and global demand



One aspect of the economic crisis of Japan has to be global demand. If the traditional export markets of Japan - mainly, other Asian countries and USA - are weakening or weakened, Japan cannot sell as much to foreigners as it can produce for them (problem of relative overproduction or inadequate demand). The weak state of global demand can be blamed on global neoliberal policies (global "race to the bottom", global financial instability). Since Japan has a problem of export demand (world demand), purely domestic demand stimulation does not do the trick. The remedy for Japan, USA and a few others would be global Keynesianism [make that global post-Keynesianism, to be more precise].
 
gk


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