| Speaker(s): Masaaki Shirakawa Chair: Professor Lord Stern Recorded on 10 January 2012 in Old Theatre, Old Building. Until a few years ago, the long stagnation of the Japanese economy after the bursting of a credit-fuelled asset bubble in the late 1980s was regarded as an episode that would never be replicated elsewhere in the world. Quite a few commentators argued that the recovery became unnecessarily drawn-out and painful because policy responses were ill-timed and inadequate. Many experts believed that prompt and massive policy responses would save any other economy from the same fate as Japan. Three years after the global economy had nearly suffered a meltdown in late 2008, following the collapse of Lehman Brothers, growth, especially in the developed economies, remains anemic, in spite of the huge fiscal stimulus and decisive monetary easing quickly introduced by governments and central banks. Economists are drawing graphs of current GDP, inflation, property prices and interest rates superimposed with Japanese data from the 1990s, revealing eerily similar patterns. Now, there is a growing fear among the general public of a prolonged period of weak growth in the developed economies, expressed in one word as "Japanization." TMasaaki Shirakawa is the Governor of the Bank of Japan, he will reflect on the experience of Japan leading to and following the bursting of the Japanese bubble, drawing particular attention to the fragility of the recovery under economy-wide ... |
