Is the World at Risk of the “ Japan Disease ” ?

Is the World at Risk of the “Japan Disease”? Scholars and experts are wrestling to define the nature of globalization in the twenty-first century. To what extent can the global picture of 2017 be described in one sentence: Significant parts of the world are at risk of becoming more like Japan. In other words, the world’s public and private debt today is approaching 300 percent of GDP. yet despite an extraordinary degree of monetary expansion and relatively tight labor markets, a number of central bankers are finding it tough to meet their inflation targets. meanwhile, wage growth remains modest. Productivity growth gains are disappointing. as Japan has done in recent years, some central bank authorities, including those in china, are purchasing equities to stabilize stock markets. has the world been afflicted with a kind of “Japan disease”? or is the current global environment a temporary development? or is Japan doing better economically than advertised? If a negative Japan-like scenario is a risk for significant parts of the world, what policy steps would potentially lead to the avoidance of such a scenario?