Magazine
Latest Issue

Japanification: the economic spectre haunting Europe

The eurozone is showing the perturbing symptoms first diagnosed in Japan, but ever-looser monetary policy is not the answer

By Paul Wallace  

A view of Frankfurt including the European Central Bank. Clouds are gathering over the currency union. Photo: Boris Roessler/DPA/PA Images

Two decades ago as Europe was preparing to launch the euro, something rather odd was starting to happen on the other side of the world. In the late 1990s, Japan began to experience deflation, a condition thought to be banished in the buoyant post-war era of global expansion. Both short-and long-term interest rates fell to historic lows, even turning negative in some parts of the money market. At the…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to letters@prospect-magazine.co.uk

More From Prospect