What is Japanification?
May 5, 2021
The central idea behind the word “Japanification” is that an economy loses altitude in its growth trajectory for an extended period. It is associated with low-interest rates, low inflation and high government indebtedness. The extent to which these factors are causal agents or just the side effects is hotly debated by economists.
Once not too long ago most countries wished to be like Japan as the country quickly turned around its economic fortunes with technology and development. So much so that Japanification was a matter of pride for most countries. Not anymore. Japanification has come to mean a country that has been suffering from all kinds of stagnation: political, demographic and economic.
