Part 5/8:
In 1985, the Plaza Accord among Japan, the United States, France, West Germany, and the United Kingdom led to significant currency adjustments aimed at repurposing global trade balances. While beneficial to the U.S., this agreement also inadvertently affected Japan's exports and economic growth prospects, leading to long-term structural shifts in the economy.
The declining growth trajectory pivoted with the Asian financial crisis in 1997, leaving Japan struggling to adapt to shifting global economic conditions. The result has been a noticeable absence of innovation, positioning Japan behind technologically advanced nations like the U.S. and South Korea.