Almost a quarter of a century ago, at the beginning of the 1990s, Japan suffered the burst of a major asset bubble, forcing firms and financial institutions to repair their balance sheets, which had been substantially impaired. From the second half of the 1990s, Japan experienced about 15 years of deflation.
At the same time, Japan experienced rapid population aging at a pace that put it ahead of other countries. What problems have these developments given rise to in Japan’s labor market? How is Japan overcoming these problems and where is Japan’s economy headed? These are the issues I would like to talk about. I.