Japan

Definition

Japan is an island nation in East Asia known for its advanced economy and technological innovation. It is one of the world's largest economies by nominal GDP and a major player in global financial markets.

5 Must Know Facts For Your Next Test

1. Japan has one of the highest public debt-to-GDP ratios in the world, exceeding 230%.
2. The Bank of Japan (BoJ) implements monetary policy, including setting interest rates and conducting open market operations.
3. Japan's economy relies heavily on exports, with key industries including automobiles, electronics, and robotics.
4. The Japanese yen (JPY) is one of the most traded currencies in the foreign exchange market.
5. Japan has experienced periods of deflation, affecting its economic policies and interest rates.

Review Questions

• What role does the Bank of Japan play in the country's financial system?
• Why is Japan's public debt-to-GDP ratio significant?
• How do export industries influence Japan's economy?

Related terms

Bank of Japan (BoJ): The central bank responsible for implementing monetary policy in Japan.

Japanese Yen (JPY): The official currency of Japan and one of the most traded currencies globally.

Deflation: A decrease in the general price level of goods and services, often resulting in economic stagnation.