Research Blog Group Froggatt (Japan)

  Japan's Economy Before and After Hiroshima- CHETTHAN NANDHAKUMAR   Introduction   August 6, 1945, the atomic bombing of Hiroshima, marked a crucial moment in world history, peculiarly for Japan. The economy of Japan immediately had long-term impacts due to this crucial event. The economy of Japan was in an eradicative state even before the atomic bombing of Hiroshima in 1945 because of its hand in World War II. Although the post-Hiroshima stood as a remarkable era. The following essay digs into Japan’s economic situation during the pre-Hiroshima and post-Hiroshima bombings. This concludes the investigation of key factors, policies, and outcomes that shaped its trajectory.   I. Pre-Hiroshima Economic Context   The economy of Japan was in an eradicative state even before the atomic bombing of Hiroshima in 1945 because of its hand in World War II. The fountainhead of the country was war-related production which was majorly dependent on foreign supplies. The country’s

Central Bank Digital Currencies (CBDCs) have emerged as a focal point in the global financial landscape, prompting several central banks, including the Bank of Japan (BoJ), to delve into exploratory phases to comprehend their feasibility and implications. The BoJ has diligently undertaken a structured Proof-of-Concept (PoC), specifically focusing on Phase 2 of their CBDC initiative, conducted between April 2022 and March 2023. This phase was primarily dedicated to identifying potential technical hurdles, evaluating basic functionalities as well as integrating additional, desirable functions that were not addressed in Phase 1. The objective was twofold: first, to unearth any technical challenges that might impede the smooth operation of a CBDC system, and second, to verify the technical implementation and processing performance. The BoJ emphasizes that no final decision regarding the introduction of a CBDC in Japan has been made at this stage. They emphasize the need for ongoin

The Japanese economy, which is currently the world's third-largest, managed to rebound to its pre-pandemic size in the second quarter of 2022. This recovery was attributed to the relaxation of COVID-19 restrictions on businesses and a subsequent increase in consumer spending, particularly in restaurants, hotels, and clothing purchases. The Gross Domestic Product (GDP) for the second quarter grew at an annualized pace of 2.2%, although slightly below the estimated 2.6%. This pushed the size of the economy to ¥542.1 trillion ($4.1 trillion), surpassing its 2019 levels. However, economists are cautious about the pace of recovery, as it has been slower compared to other nations. While Japan's economy returned to its pre-pandemic size, concerns exist about a potential loss of momentum in the coming months. The end of pandemic restrictions on businesses in late March greatly contributed to the economic recovery. Consumer spending, representing more than half of Japan's economic

Navigating the Digital Frontier: A Closer Look at CBDCs and Japan's Position   Currency, as we know it, is a token or medium of exchange that facilitates the trading of goods and services, saving us valuable time. Throughout history, we have used various forms of currency, including paper money and coins. Long ago, the barter system was prevalent, but trading your gold necklace for 1 kg of rice wasn't a practical way to exchange goods. Slowly, societies began using tokens such as bronze and gold coins. With the advent of paper currency, these coins, along with the introduction of banks, became standardized mediums of exchange. The Bank of Babylon, established in ancient Mesopotamia around the 18th century BC, is considered the world's first recorded bank. Interestingly, this bank was essentially a temple that served as a financial institution, providing loans and safeguarding valuable items (First bank in the world and the oldest bank in the world, 2020) [1]. It played a

                                                                                                           CURRENT STATUS OF JAPAN ECONOMY   INTRODUCTION – The Japanese economy faced lots of struggle last year, including a historic decrease in the yen`s value against the US. Dollar and decades high inflation. Moreover, the country can try to pushed to resume economic ventures shutdown by the covid-19 pandemic, every department can cope with plethora of difficulties in import and export. Along with these store and restaurant have difficulty in consumer safety woes. At that time government and individual should take some safety measure to readdress this issue. In addition, the reopening of borders for inbound tourists for the first time in two years. While, some major economies including the U.S. are expected to increase this year due to a series of rate hike campaigns to contain inflation, Japanese economy is looking quite positive. (Figure 1- Japanese Economy)   OUTLINE TH

  PAYMENT AND SETTLEMENT OF BANK OF JAPAN IN CBDC   INTRODUCTION OF CBDC -  Central Bank Digital Currencies (CBDCs) represent a significant leap in the digital transformation of finance, powered by advances in technology and digitization. They are rapidly evolving, with central banks issuing and regulating digital money as legal tender, introducing enhanced security measures to protect customer assets. CBDC adoption signifies a shift toward a more efficient and secure financial system. Japan's central bank plays a pivotal role in ensuring that digital currencies hold the same legal status as physical cash. However, this transition is not without challenges. In light of the international nature of digital currencies, the operation of cross-border transactions requires careful regulatory coordination. Cybersecurity is a paramount concern due to the need to safeguard digital infrastructure and protect financial assets. Additionally, the digital revolution has reduced the reliance