The David McWilliams Podcast Japan: Lost in Translation Part Two
Aug 7, 2025
Russell Jones, an economist and author of 'A Modern Economic History of Japan', dives deep into Japan's economic saga, from its 40-year stagnation following the 1990s bubble burst to alarming population decline predictions. He explores the unique blend of festive cheer and economic despair during Christmas, critiques the slow response of financial institutions, and discusses the rise of right-wing populism amidst a complex geopolitical landscape. The conversation balances humor with insightful commentary, shedding light on Japan's cultural and economic complexities.
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Japan Christmas Surprise
- John Davis shared his personal experience in Japan during its economic downturn in the early 90s.
- He observed the cultural peculiarity of Christmas decorations despite it being a normal working day.
Shame Deepens Japan's Crisis
- Japan's long economic stagnation was worsened by avoidance of financial sector reckoning due to cultural shame.
- Financial sector problems went unaddressed for a decade, causing deflation and GDP stagnation from 1995 to early 2020s.
Balance Sheet Recession Explained
- A balance sheet recession traps an economy because asset values drop but debts remain high.
- Ireland escaped its crisis with a rising population and influx of multinationals, unlike Japan's dilemma.
