I would like to share my views on the three dynamisms necessary to break out of this stagnation in disposable income, based on my own experience at a private firm. A. Dynamism of Japanese Firms My first point is about the dynamism of firms. Many Japanese firms long wrestled with declining profitability and a deterioration in business performance.
This stems from several factors, including the yen's sharp appreciation following the 1985 Plaza Accord and the bursting of the bubble economy in the early 1990s, coupled with the higher price of imported raw materials brought about by overseas economic growth and with the inflow of low-priced goods from developing economies.