Introduction

This chapter serves as an introduction to the book, providing background information such as an overview of the Japanese economy from the 1990s to the 2010s, and an outline of each chapter. Since the 1990s, Japan has experienced a prolonged period of recession following the bursting of the bubble economyBubble (bubble economy) and the financial crisisFinancial crisis that began in 1997. The Japanese government faced a number of challenges during this period, including the implementation of economic stimulus measures in the context of fiscal rehabilitation, the disposal of non-performing loansNon-performing loans, the stabilization of the financial system, and the revitalization of the industrial and corporate sectors. Additionally, the strengthening of their international competitiveness was a key objective. Some structural problems, such as declining birth rates and an aging and shrinking population, as well as institutional fatigue in the Japanese-style economic system, were associated with the recession-induced phenomenon. The objective of this book is to enhance the comprehension of the historical evolution and contemporary state of the Japanese economy through an analysis of industrial, monetary, and other macroeconomic policies. Each chapter is written by scholars and current and retired bureaucrats, respectively, and provides a comprehensive analysis of the relevant policymaking process and its historical context.