Review the Case Study on Page 85 of your text. under is text for 85
japans lost decade is the term for the economic crisis that hit japan in the 1990s during this period japan experianced low to negative economic growth and delining prices. in response the bank of japan progressivey cut intrest rates,and by the late 1990 te intrest rate had dropped to almost zero. japan was caught in a liquidity trap.despite its efforts the bank of japan could not stimulate spending. chronic disinflation(inabilityof prices to go up fast before as before) and deflation (fall of prices becasue of decrease spending)were constant problems . in the early 2000s to spur demand the bank of japan implemented quantitative easing. this policy involved expanding te monetary base and targeting money growth instead of intrest rates.the bank of japaneld the intrest rates at zero and raised the money supply through purchasingassets . that strategy worked to stabilize pricesbut only temporarily.deflation kept coming back.throughout the 2000s japan continued to fight against declineing prices
Prepare a 2 page research paper that describes Japan’s Lost Decade and compare it to Quantitative Easing Policy employed by the US Government. In your research be sure to address the impact of the policies and explain the results based on macroeconomic theory. Was the decision employ Quantitative Easing in the US correct and what are the expected results.
- The submission must be in APA format.
- In addition to the 2 pages of content, include a title page, abstract, and reference page.
- The paper should be supported with at least 2 Academic References.
- The paper must include at least 2 graphics that describe or explain economic factors related to Quantitative Easing.
Some Things to Consider: The paper must focus on the evaluating the impact of the policy and predict future consequences.