Public works needed in Japan
A Bank of Japan report shows that Japan is running out of sources of demand. So far, the government is not compensating through public works, but that may have to change.
Without demand, there is no growth. GDP growth in Japan has traditionally come disproportionately from exports, specifically from car exports. But with the monthly Bank of Japan BOJ report noting that sales to Japan's major export markets are floundering as a result of the strong yen, growth will be hard to generate without government intervention.
Government expenditure on public works has a mixed record in Japan. In the 1990s, often referred to as Japan's 'lost decade', public works projects were...
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