The Myth of Japan’s ‘Lost Decades’

By Eamonn Fingleton

Tokyo, Japan — In this slot a few days ago I posed some historical questions that, judging by the email I have been receiving, have perplexed a lot of readers.

Let me now fast-forward to our own time and try some questions that will probably prove almost equally perplexing. They concern the Japanese economy, that erstwhile juggernaut of world trade of the late 1980s, which, we are told, has been mired in stagnation ever since.

Question 1: Given that Japan’s current account surplus (the widest and most meaningful measure of its trade) totaled $36 billion in 1990, what was it in 2010: (a) $18 billion; (b) $41 billion; or (c) $194 billion?

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