After 1990, however, the nation again surprised the world. Japan abruptly entered into a puzzling period of paralysis; its economic ascent stalled and its government ceased to function as effectively as it once had. Foreign observers were at a loss to explain Japan’s failure to take steps to revive its moribund economy. U.S. policymakers spared no opportunity to advise their slumping ally on the reforms required. The “Japanese economic miracle” was soon eclipsed by the rise of the neighboring colossus. The 1990s became Japan’s “lost decade,” and China’s emergence as an economic giant dimmed the memories of Japan’s achievement.
