Through the last decade of the 20th century, the Japanese economy has been in a state of confusion. After the bubble peaked in 1987-90, the economy went into a tailspin. The economy hit bottom in October 1993, according to official statistics, but since then it has shown few tangible signs of robust recovery. As of last October, it was moving slowly at that low level.
Policymakers have come up with a variety of measures to reflate the sluggish economy, but none has worked. These include stepped-up public-works spending, a de facto zero-interest-rate policy and limited deregulation. It looks as though Japan is troubled by a disease that is incurable with conventional medication.
Seeing that medication does not work, some experts have proposed drastic surgery, or economic structural reforms, to treat the malaise. These advocates of market fundamentalism say competition -- in which survival of the fittest is the rule -- is the only way to revive the moribund Japanese economy.
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