Balance Sheet Recession is a groundbreaking book claiming that Japan is suffering from a temporary but highly unusual economic aberration. It argues that contrary to popular belief, it is this massive shift in corporate behavior, instead of structural problems, that is the root cause of both the deflation and the non-performing loan problems that have troubled Japan for so long. Balance Sheet Recession clearly explains how such a recession can happen in any economy following an asset price bubble, and how best to deal with it.
Richard Koo's experience in dealing with both the US banking crisis of the early 1980s and the Japanese balance sheet and banking problems of the last ten years makes him uniquely qualified to comment on this situation.
Table of Contents
Fiscal Stimulus Essential in Overcoming Balance Sheet Recession
Conditions for Recovery
The Missing Link in Macroeconomics
Haste Ill-Advised in Disposing Non-Performing Loans
Understanding the Misunderstandings: The Real Story
Four Kinds of Banking Crises and the Role of the Blanket Guarantee
Real Challenges Facing Asian Economies
Japan's Lessons for the U.S. Economy
Real Challenges Facing Japan
Appendix 1: Summary of Balance Sheet Recession