Europe Isn’t Japan in the 1990S. You Should Still Be Worried

Europe Isn’t Japan in the 1990S. You Should Still Be Worried
A snow-capped Mount Fuji (back L) in the distance, pictured from the observation deck of a skyscraper in Tokyo on Dec. 14, 2018. Kazuhiro Nogi/AFP/Getty Images
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Europe’s sclerotic growth and political dysfunction inspire frequent comparisons with Japan’s lost decade from the mid-1990s. We’re not there yet.

The region’s bout of misery this year—Germany’s industrial slump and the struggle to fix its banks, Italy’s inability to reform, the apparent defeat of central bankers seeking to wean the euro area off stimulus—may seem to make perpetual malaise look inevitable.