On the Japanese economy.

• Author: Rees, Matthew

"Japan has largely escaped the housing bubble and huge credit losses that are weighing on the United States and Europe. Then why is Japan's economy shrinking faster? Economists and corporate executives are realizing that the nation suffers from the bursting of another type of bubble--one in manufacturing. Between 2002 and 2007, Japan's manufacturing sector boomed, driven by soaring demand for Japanese automobiles and electronic gadgets by consumers globally, including Americans feeling flush amid rising...