The revised edition of this highly acclaimed work presents crucial lessons from Japan's recession that could aid the US and other economies as they struggle to recover from the current financial crisis. This book is about Japan's 15-year long recession and how it affected current theoretical thinking about its causes and cures. It has a detailed explanation on what happened to Japan, but the discoveries made are so far-reaching that a large portion of economics literature will have to be modified to accommodate another half to the macroeconomic spectrum of possibilities that conventional theorists have overlooked. The author developed the idea of yin and yang business cycles where the conventional world of profit maximization is the yang and the world of balance sheet recession, where companies are minimizing debt, is the yin. Once so divided, many varied theories developed in macro economics since the 1930s can be nicely categorized into a single comprehensive theory- The Holy Grail of Macro Economics

The revised edition of this highly acclaimed work presents cruciallessons from Japan's recession that could aid the US and othereconomies as they struggle to recover from the current financialcrisis.This book is about Japan's 15-year long recession and how itaffected current theoretical thinking about its causes and cures.It has a detailed explanation on what happened to Japan, but thediscoveries made are so far-reaching that a large portion ofeconomics literature will have to be modified to accommodateanother half to the macroeconomic spectrum of possibilities thatconventional theorists have overlooked.The author developed the idea of yin and yang business cycleswhere the conventional world of profit maximization is the yang andthe world of balance sheet recession, where companies areminimizing debt, is the yin. Once so divided, many varied theoriesdeveloped in macro economics since the 1930s can be nicelycategorized into a single comprehensive theory- The Holy Grailof Macro Economics

Acknowledgments ixPreface xiChapter 1 Japan's Recession 1Chapter 2 Characteristics of Balance Sheet Recessions 39Chapter 3 The Great Depression was a Balance Sheet Recession 85Chapter 4 Monetary, Foreign Exchange, and Fiscal Policy During a Balance Sheet Recession 125Chapter 5 Yin and Yang Economic Cycles and the Holy Grail of Macroeconomics 157Chapter 6 Pressure of Globalization 185Chapter 7 Ongoing Bubbles and Balance Sheet Recessions 221Chapter 8 World in Balance Sheet Recession 253Appendix: Thoughts on Walras and Macroeconomics 295References and Bibliography 309Index 321