The Research Of Japanese Government Macroeconomic Regulation And Control Means(1985~2003)

The statistic analysis shows that Japanese investment is the main factor ofeconomic growth, and effective investment growth depends largely on export. At thebackground of insufficiency of overseas market demand after the Plaza agreement,Japanese government took Keynesian policy to pull domestic demand to offset thedecreasing overseas market demand. However this was not reasonable，because theeconomy of Japan was driven up by the overseas’ demand at that time. At least sincethe1980s of last century, Japan had entered the"supply-constraint economicsituation",during this period, Japanese basic characteristic were: firstly, the totaleconomic output and per capita quantity of Japan stood on the top of the list amongthe world. Meanwhile, the residents income distribution was in a good condition andthe residents consumption was stable always; secondly, it’ s economic expansion wasmainly dependent on export which was also an important factor to affect the domesticinvestment. Take multiplied principle for example. One of its important assumptionsis that insufficient domestic demand taken by investment as the first principle, and themain factor like financial factor——money stock or interest rate, both are quiteunsuitable for Japanese investment function. Meanwhile, the policy of interest ratemarketization causes large amount of money to flow from financial sectors to stockmarket and real estate market as a gaudy consequence of economic growth foam.After the bubble burst，the consequence of implementing positive fiscal policyand monetary policy to solve the economic downturn was generally useless，On onehand,it was impossible for Japan to create "effective supply"through a newtechnological revolution to boost domestic demand; On the other hand, the overseasdemand of Japan was restricted by the unfavorable international economicenvironment. Accordingly, the Japanese recent economic outlook are more likely tocontinue to slump.