Hong Kong, Singapore, South Korea, and Taiwan were long hailed for their economic dynamism, but now risk following the low-growth path of Japan over the last three decades. To avoid this fate, their governments must adopt a comprehensive set of policies to tackle structural weaknesses.
NEW YORK – At the annual meeting of the American Economic Association (AEA) in early January, former US Federal Reserve Chair Janet Yellen, former European Central Bank President Mario Draghi, and eminent economists warned that Western economies risked “Japanification”: a future of sluggish growth, low inflation, and perpetually low interest rates. Yet, surprising as it may seem, this malaise also threatens East Asia.
NEW YORK – At the annual meeting of the American Economic Association (AEA) in early January, former US Federal Reserve Chair Janet Yellen, former European Central Bank President Mario Draghi, and eminent economists warned that Western economies risked “Japanification”: a future of sluggish growth, low inflation, and perpetually low interest rates. Yet, surprising as it may seem, this malaise also threatens East Asia.