Answer both questions based on the readings on Japan on blackboard by Hart-Landsberg and Koo and from the class notes. 1. Hart-Landsberg describes
Japanese economic development after WWII as éscrap and build.é Explain. What industries were promoted, scrapped? Why? What industries replaced
those that were scrapped? 2. Koo argues that, since the bursting of the bubble economy, Japan has suffered a balance-sheet recession. Explain what this
means. What has been the role of fiscal and monetary policy in addressing the long stagnation and deflation in the Japanese economy?
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