The purpose of this report is to explain the causes of Japan's economic stagnation and identify policy choices that might help restore growth.
The focus is intentionally on longer-term issues, rather than the immediate challenges that are associated with the fallout from the global recession.
It starts its analysis using the neoclassical growth model to describe the post-war Japanese economy. The report also reviews three sets of policy choices that Japan made after the growth slowdown that contributed to economic stagnation. It concludes with a review of several of the major reforms undertaken by the Koizumi administration.