The Japanese Miracle, Again?

3 Quarks Daily — which, true to its name, is one of our daily reads — pointed recently to an interesting article on the Japanese economy by UCLA business professor Sanford Jacoby.

Japan pulled out of its economic slump in 2002 and now figures among the fastest-growing developed economies. So why has the story of this turnaround been such a sleeper in the U.S.? Jacoby suggests it’s in part because Japan’s recent success is “controversial,” the result of strategies rather different from ours. In other words, that it’s surprising and somehow difficult to accept — and therefore not heavily covered by American media.

Which bring us to the meat of it: is the U.S. model of capitalism really the best and only way? How does Japan’s differ — and what could it teach us? Shouldn’t we be paying closer attention to one of the strongest Asian economies, especially when it’s the economy of our closest regional ally…and happens to be China’s biggest trading partner?

Extra Credit Reading

Sanford M. Jacoby, Japan’s alternative economics, Le Monde diplomatique, June 2006.

(Thanks, 3 Quarks Daily)

Sanford M. Jacoby, Look who’s back in the passing lane, International Herald Tribune, March 17, 2006.

The rising sun leaves some Japanese in the shade, The Economist, June 15, 2006.

(Thanks, sidewalker)

Uneven recovery in Japan, The Economist, May 4, 2006.

Chalmers A Johnson, MITI and the Japanese Miracle, Stanford University Press, January 2004.

(Thanks, Cave_Blogem)

Weighing in on the Japanese economy, International Herald Tribune, May 31, 2006.

Rebecca MacKinnon, Japan’s recovery: where next?, Forumblog.org, June 13, 2004.

Taro Akasaka, Japan Economy Outlook: Recovery to Last Through 2012, Japan Real Estate Blog, November 1, 2005.

Japan’s Dangerous Savings Drought, BusinessWeek, June 9, 2006.

(Thanks again, sidewalker)