Krugman Sees Japan’s Shrinking Population as Crimping Growth

Nobel Prize-winning economist Paul Krugman said Japan’s slow growth results from the country’s shortage of people and the output increase of the working-age population is “not that bad.”

“Japan has a big long-term problem, which is basically a shortage of Japanese,” the Princeton University economics professor said in an interview on Bloomberg Radio’s “Taking Stock” with Pimm Fox yesterday. “They have terrible demography. Once you take that into account, their growth per working-age person is not that bad.”