But the formula foundered in the mid-1980s for many reasons . The yen's value rose. This made Japan's exports more expensive. American companies parried Japanese rivals by lowering costs and improving products. Without booming exports, Japan's economy has lacked an engine.
Economic growth subsists on creativity and change.
Companies introduce new products or cut prices. This expands supply. By improving efficiency, companies raise wages and profits. This expands demand. Expanding demand absorbs expanding supply.