Is the developed world following Japan’s long and winding road? Of course, this is not the kind of question that can be answered with a simple yes or no. Policy measures are shaped by not only economic factors but also the response of society and the political world.
Every country has its own unique complexity, both in social and political terms, of which outside observers have only a limited knowledge. Therefore, instead of providing a direct answer to the question, I would like to list three factors that define the length of time necessary for adjustment. The first factor is the size of excess debt accumulated before a crisis.