Two more Japan charts
For those that like to talk about Japan lost decades, you may consider it only one lost decade. After solving the banks nonperforming loans problem, the Japanese sustained a very strong recovery on a per worker basis – that accounts for Japan’s demographic handicap -.
And Japan achieved this despite mild deflationary headwinds. If people wants to compare the current US economic situation to Japan, it seems like 2002-2008 might be a better fit than the 90s lost decade, quantitative easing included.
All of these graphs are from the excellent Adam Posen presentation at the London School of Economics from May this year.