The Comprehensive Research Of The "Double Zero Phenomenon" In Japanese Economy

A special word for the Western countries in recent years have appeared in------Japanization. The word refers to a number of Western countries, which have sufferedthe problems that Japan had suffered before. And we call them “Turning Japan”.This article does not specifically analyze whether the United States and somecountries in Western Europe turn Japanese. Instead of that, this article does focus onthe analysis and research of many emerging phenomenon. So that we can understandwhat is the Japanization. The paper has been divided into two categories. The first oneis, after the 《Plaza Accord》between the USA and Japan, many objective economicphenomenon were coming out. Such as zero prize increases, zero labor increases, andzero growth in loans of banks and other finance institutes. And the second one is whatthe Japanese government has done against the sustained deflation. Fox ample, zerointerest of loans, quantitative easing monetary policy, and government debt. In total,the most fundamental performance is “double zero”------zero interests and zero prizeincreases.Under the influence of so much phenomenon and policy, Japan has fallen into theliquidity trap which no other countries come out after the World War Two. But the keypoint is even the government and center bank haven’t stopped the policy, the generalview is that the influence is not notable. So in this article, we can also knowsomething about what we can learn from Japan.This paper has been divided into six chapters. The first chapter is introduction. Itinvolves the purpose and significances, as well as the innovation and deficiency. Thesecond part is the introduction of “Japanization”, and some other people’s research. The third part is the most important chapter of this article, because all of thephenomenon will come out in this part, such as the objective economy and centerbank’s policy. In the fourth part, we focus on the reason why only Japan has come outthe liquidity trap. Also, we analyze the microeconomics and the macroeconomics. Inthe macroeconomics, we analyze the economic structure, and some policy which hasbeen taken incorrectly. The fifth part is about how these phenomena influence theJapanese economy. The core of the impact is liquidity trap so that Japan’s monetarypolicy is useless. And for the enterprises, the business objective has turned maximizeprofits into minimize debts. The last part is what we can learn from Japan.