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Marxist Political Economy and the Crises in Japan and East Asia

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Japan has now entered the twelfth year of a crisis of near zero growth. Its banking system is threatened with collapse because, on an increasing scale, businesses do not have profits large enough to service their bank loans. In the 1990s, immense sums of money have been spent by Japanese governments on ineffective efforts to rekindle growth in the economy. Unemployment is high and investment falling. The burden of state debt is already higher than that of the other industrial countries, and yet the huge costs which will be involved in bailing out the banking system are still to be faced.


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