Restoring Japan's Economic Growth
Restoring Japan’s Economic Growth is an in-depth analysis of why a shift in Japanese fiscal and monetary policies, as well as financial reform, would be in Japan's own self-interest. It demonstrates that Japanese economic stagnation in the 1990s is the result of mistaken fiscal austerity and financial laissez-faire rather than any supposed structural failures of the "Japan Model." The book outlines a program for putting the country back on the path to solid economic growth―primarily through permanent tax cuts and monetary stabilization―and draws broader lessons to be learned from the recent Japanese policy actions that led to the country's continuing stagnation.
"[Posen] offers a trenchant examination of Japanese fiscal policy during the 1990s... He persuasively debunks the argument that fiscal stimulus cannot work in Japan."
— Richard N. Cooper, Foreign Affairs
"Japan's persistent stagnation is among the most important problems confronting the world economy today, and Adam Posen's treatment of it is the best I have seen. His analysis is right on the mark."
— Benjamin Friedman and William Joseph Maier, Professor of Political Economy Harvard University
"Its analysis is convincing, and its policy recommendations are... sensible. I strongly recommend it to economists and policymakers alike. I... hope that Japanese policymakers have the wisdom to heed his advice."
— Charles Yuji, Horioka Osaka University and National Bureau of Economic Research, Journal of Economic Literature