Blog Post

Deleveraging: Lessons from Japan

In the late 1980s, Japan’s credit-fuelled asset bubble burst, leading to a long stagnation. The growth problem experienced by many developed economies at the moment is reminiscent of the Japenese episode. If one compares current GDP, inflation, property prices and interest rates to the ones recorded in Japan, strikingly similar patterns emerge. Some refer to […]

By: Date: February 7, 2012 Topic: Global Economics & Governance

In the late 1980s, Japan’s credit-fuelled asset bubble burst, leading to a long stagnation. The growth problem experienced by many developed economies at the moment is reminiscent of the Japenese episode. If one compares current GDP, inflation, property prices and interest rates to the ones recorded in Japan, strikingly similar patterns emerge. Some refer to the current period of weak growth as "Japanization."

In a public lecture at the London School of Economics, Masaaki Shirakawa, Governor of the Bank of Japan, reflects on the Japenese experience, placing a special emphasis on the recovery in the background of deleveraging.

In a working paper released today by Bruegel, Eric Ruscher and Guntram B. Wolff look into corporate balance sheet adjustment episodes in Japan an Germany, among other countries. The authors find that adjustment episodes have a significant impact on corporate balance sheet ratios, with an accumulation of liquidity and a fall in leverage.


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Opinion

A silver lining for ageing Asia

An ageing population is generally bad news for growth prospects, but Japan and Taiwan offer important lessons.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: December 8, 2020
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Podcast

Podcast

Sizing up the world's largest trade deal

What should be Europe's strategy towards the Regional Comprehensive Economic Partnership (RCEP)?

By: The Sound of Economics Topic: Global Economics & Governance Date: November 18, 2020
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Past Event

Past Event

How can the EU and Japan boost collaboration and multilateralism around the globe?

Multilateralism and global collaboration: the case of Japan and the EU.

Speakers: Maria Demertzis, Fukunari Kimura, Noritsugu Nakanishi, Takehiko Nakao, André Sapir and Christel Schaldemose Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: October 22, 2020
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Policy Contribution

COVID-19’s reality shock for external-funding dependent emerging economies

COVID-19 is by far the biggest challenge policymakers in emerging economies have had to deal with in recent history. Beyond the potentially large negative impact on these countries’ fiscal accounts, and the related solvency issues, worsening conditions for these countries’ external funding are a major challenge.

By: Alicia García-Herrero and Elina Ribakova Topic: Finance & Financial Regulation, Global Economics & Governance Date: May 28, 2020
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Podcast

Podcast

Singapore's experience in dealing with COVID-19

A conversation with Dr. Vivian Balakrishnan, Minister for Foreign Affairs of Singapore, on how this city-state has tackled the coronavirus.

By: The Sound of Economics Topic: Global Economics & Governance Date: May 19, 2020
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Past Event

Past Event

The Sound of Economics Live: Singapore's experience in dealing with COVID-19

A conversation with Dr. Vivian Balakrishnan, Minister for Foreign Affairs of Singapore, on how this city-state has tackled the coronavirus.

Speakers: Vivian Balakrishnan, Giuseppe Porcaro and Guntram B. Wolff Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 19, 2020
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Podcast

Podcast

China’s economy after COVID-19

The first country to be hit by the current pandemic, China has been at the forefront of the fight against COVID-19. What have been its impacts on the Chinese economy? What does it represent, more broadly, to the global economy? Are global supply chains really starting to be put into question? Today, Giuseppe Porcaro is joined by Alicia García-Herrero and Yiping Huang, Professor of Economics and Finance at the Peking University.

By: The Sound of Economics Topic: Global Economics & Governance Date: May 6, 2020
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Opinion

Why are some stock markets in Asia less affected by coronavirus?

While Asian markets are in a sea of red, mainland China, New Zealand, Hong Kong and Taiwan are all defying the gravity.

By: Alicia García-Herrero, Gary Ng and Bruegel Topic: Global Economics & Governance Date: March 31, 2020
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Opinion

Epidemic tests China’s supply chain dominance

Much has been written on the Wuhan coronavirus that causes the respiratory disease Covid-19, but very little is known yet about its impact on the global economy and, in particular, the global value chain. Still, one thing is clear: The shock is bigger than that caused by severe acute respiratory syndrome (SARS), for the simple reason that China is much more important for the global economy than it was then.

By: Alicia García-Herrero and Bruegel Topic: Global Economics & Governance Date: February 17, 2020
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Book/Special report

Megatrends: Key Forces Forging Our Future

A vision for Europe to prosper and best serve its citizens

By: Rebecca Christie and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: February 3, 2020
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Blog Post

Japanese economy: Déjà vu – but worse

It is difficult to imagine how Japan can undertake any major economic reform if it has taken five years to increase the consumption tax and has needed two strong fiscal packages.

By: Alicia García-Herrero and Bruegel Topic: Global Economics & Governance Date: December 12, 2019
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Past Event

Past Event

EU-Asia trade and investment connectivity

The Asia Europe Economic Forum (AEEF) was established in 2006 as a high level forum for in-depth research-based exchanges on global issues between Asian and European policy makers and experts. This year, the AEEF will be hosted by Bertelsmann Stiftung on 28-29 November, 2019 in Berlin, Germany, and it will focus on “EU-Asia trade and investment connectivity”.

Speakers: Aart de Geus, Guntram B. Wolff, He Fan, Alessia Amighini, John Beirne, Nicolaus Heinen, Jae-Young Lee, Cora Jungbluth, Alicia García-Herrero, Xin Yuan, Andreas Esche, Ken Wu, Sébastien Jean, Amb. Karsten Warnecke and Bruegel Topic: Global Economics & Governance Location: Bertelsmann Representative Office, Unter den Linden 1, 10117 Berlin Date: November 28, 2019
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