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I'm interested in how the Japanese economy would be more successful, with Japan still having is peak of prosperity in the 80s. Whether or not there's a recession isn't important to me; i'm curious how their economy would be the most successful in the long run.

I've read the following on why Japan's economy was successful:

"Japan, Korea and Taiwan had governments hell-bent on dictating business activities from 1958 to 1982, when regulations were much stricter, and the global economy grew 2.6% per year."

“Japan experienced an extraordinary economic boom during the 1950s under the auspices of the various factions of business leaders, bureaucrats and politicians that made up the Liberal Democratic Party. Conflicts in Korea and Vietnam helped to fuel unprecedented economic growth. But so, too, did the close relationship between government banks and manufacturers.”

And here’s what I’ve read about its collapse:

“Japan continued to be a formidable economic competitor to the US despite US countermeasures. Having been forced by the Reagan administration to dramatically revalue its currency upward in 1985, Japan used the occasion to tie the developing economies of the rest of Asia to itself while reducing dependence on the US. But these efforts foundered when the over-heated Japanese economy fell into an indefinitely long slump beginning in 1989.”


"Following the collapse of this boom in the late 80s, Japan fell into the economic doldrums from which it has barely emerged. The impulse towards Japanese economic recovery lay not in the US market, but in Asia."

So, what could the economic policies in the US, or Asia, do to help out Japan? Would Japan have to change things back to the way they were doing things in order to be more prosperous?

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