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Martin Feldstein: Japan's economic quandary

Martin Feldstein

TheJapaneseeconomyisaparadoxicalmixtureofprosperityandfailure.And,inasignificantway,itsprosperitymakesitsfailuresdifficulttoaddress.Percapitaincomein2015(intermsofpurchasingpowerparity)amountedto$38,000inJapan,closetothe$41,000averageinFranceandBritain.Theunemploymentrate,at3.3percent,issubstantiallylowerthantheUSrateof5percentandtheeurozonerateofabout10percent. ButJapan'seconomyhasnowslippedintodeflation,withconsumerpriceslowerinMarchthanayearago,whilerealGDPisdeclining.Despitenear-zero ...