Moreover, a lack of financing may have impaired the ability of people to start new businesses and implement new ideas and technologies. As the economy strengthens further, many of these processes could work in reverse, boosting our productivity prospects.
The Takahashi Economic Policy – combining fiscal, monetary, and exchange policies effectively – led to the adjustment of the yen’s excessive appreciation and counteracted declining price levels. As a result, among the major world powers, Japan became the first to succeed in achieving an economic recovery and escape from deflation during that period.