Japan's recession Essay Example | Topics and Well Written Essays - 500 words

Japan's recession - Essay Example The government of Japan in May 2009 approved a stimulus of 2 trillion packages for Japanese corporations that were weak as well as less stable. It is ordinary for Japanese government to help weaker companies. Nevertheless, Japan’s latest recession cannot actually be attributed to a singular occurrence, experts, however believe that one of the leading reasons could be associated to a fourteen year high for the Yen in comparison to the dollar. The effect of Japan’s recession greatly altered the country’s market values on nearly all goods and their property market. Nevertheless, Japan was not the only nation that experienced the effect of recession, other countries like the US and Britain also lost a great amount of exports that were being traded to Japan, in addition to several other imports. Additionally, several Japanese stocks trading in foreign markets also plunged because traders feared losing totally especially the ones who had invested in Japan’s secu rities market (Koo, 2011). The Japanese government apart from organizing money for stimulus package also set up a system of strategies to assist in ensuring that the finances were being utilized efficiently. The government of Japan also spoke on how they were planning to assist those who recession had affected by providing various steps aimed at bringing the economy back to usual national standards. These steps included offering reduced mortgage interest rates, decreased requirements especially for businesses doing application for subsidies, extended subsidies by 6 months for energy efficient vehicles, extended subsidies for appliances that were energy-efficient, expanded government supported protection for corporations that needed funding from the government and finally offered incentives for freshly built houses as well as the ones renovated with appliances that were energy