Economy In Japan

Understanding the study of Economics

What is microeconomics?

The study of the individual parts of the economy, the household and the firm, how prices are determined and how prices determine the production, distribution and use of goods and services.

What is Macroeconomics?

The study of the sum total of economic activity, dealing with the issues of growth, inflation0 and unemployment and with national economic policies relating to these issues.

Let me assume that the study of economy is like looking at a forest. The government is the forest and the trees are either consumers or firms.Microeconomics is to look at the individual trees to analyze or understand the overall economic situation. Macroeconomics is to look at the whole forest from the airplane.

Microeconomics is close to our daily life Ð'- what we buy, how we spend, how much we get paid.

Macroeconomics is more like the nationwide information, which we hear from masmedia daily such as the decision or investment in public sector, the ups and downs of unemployment rate, the trend of monetary market or how the world trades are doing.

Macroeconomics has three players, which are government, corporation and household. The growth of GDP, CGPI (corporate goods price index), the interest rate, or the rate of unemployment are used as the tools to see the economic situation of the countries.

There are three markets in Macroeconomics.

1. Produce market

2. Monetary market

3. Labor market

Keywords of the above markets are as follows:

1. Produce market: equity and labor, GDP (Gross Domestic Products), consumer and investment, consumer price.

2. Monetary market: money supply, currency and interest rates.

3. Labor market: worker, unemployment rate, employer and wages.

Economy in Japan

In order to lubricate the economy, the government tries to expand of public investment. The corporations are willing to invest in facilities and the consumers are to invest various products for financial investment. The former is to prevent the economy from going down, the latter is to stimulate the economy more positively. Consideration of balancing out the elements for economical growth is fiscal policy.

According to the research, Japan will continue to see the expansion of private investment and the active consumption of products.

I read the internet newspaper articles regarding Japan's economy and most of them were quite positive at this time.

Expansion of investment stimulates the employment, which will result lowering the unemployment rate. More labor necessity means the market demand are increasing and there are more consumers, who are willing to spend the money.

Japan had been suffering the recession during 1990's and as I worked for a general contractor of construction, I had seen what happened. In late 80's, Japan's economy