The Japanese economic decline of the 1990's can be attributed to several things: poor growth performance, serious fiscal problems, weak labor market conditions, weakening of the trade and external accounts of the country, and excessively loose stance of macroeconomic policies. ... Serious fiscal problems: Large and growing public debt to GDP ratio, in 1992 it was 63% and rose to 89% by 1996. ... Excessively loose stance of macroeconomic policies: Very loose monetary policy to stimulate recovery and save the collapsing banking system and the nominal interest rate was close to zero...

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• Approx Pages: 1
• Grade Level: Undergraduate

The role of fiscal policy is to counteract undesirable trends-- to push the economy out of recession and to slow it down if it becomes overheated and inflation occurs. If the economy is headed downward into a recession, fiscal policy is often used to stimulate the economy. ... The Keynesian way of thinking does tend to overlook secondary effects that fiscal policy can have on credit market conditions. ... Under monetary policy, the Fed often has difficulty dealing with recessions. ... This is why fiscal policy is a more reliable and better fit choice. ...

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• Grade Level: Undergraduate

Monetary and Non-Monetary incentive- when you describe monetary, it is like if you had a career in engineering, you have that job because you like the money it pays. A non-monetary concept is if I had a job like being a teacher and I had the opportunity to tutor for fun, not because I have too. ... In a monetary policy they can change the reserve requirement. ... Fiscal Policy is controlled by elected officials, they set taxes, borrowing and spending money so they can get the economy rolling if they are in a recession. 2. 12.4 1. ...

• Word Count: 1180
• Approx Pages: 5
• Grade Level: High School

State of the Economy It is difficult to declare a definite economic state. To declare that the nation is in a recession may be a bit of an overstatement, but it is also difficult to ignore the fact that stock market prices are at some of its lowest points in history. An argument can be made b...

• Word Count: 813
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• Has Bibliography