External shocks drive Japanese business cycles, supply shocks key factor.
The study looked at what causes ups and downs in Japan's economy since the 1990s. They focused on outside factors like changes in risk and foreign demand, as well as inside factors like supply and demand. The results showed that around 20% to 40% of changes in output can be explained by outside influences. Supply shocks were the biggest reason for economic changes in Japan over time, and risk changes were especially important after the 2008 recession.