Japan has been stuck in a long economic slump since the 1990s, known as the "Lost Decade." The economy is not just in a temporary downturn but facing deep-rooted issues like an aging population, banks being cautious about lending money, and local governments relying too much on central funds. This has hindered innovation and growth. The problem is not just a lack of money in the system but a mismatch between how much people save and invest. The impact of government spending has also decreased. The study challenges the idea that Japan is in a liquidity trap and suggests solutions to kickstart the economy.