Japan's economy has gone through phases of prosperity and depression. During the years 1950-1973 the Japanese economy experienced a period of rapid growth. Then the economy slowed until the late 1980s. After the 1980s, Japan suffered a decade of economic crisis. This decade is known as the “Lost Decade”. Some say you have to know your past to see your future. In this essay I will discuss the major issues of the past and present in the Japanese economy. These problems are what led Japan to become the fourth largest economy in the world. EDO period Tokugawa Ieyasu ruled Japan after Hideyoshi's death in 1598. In 1603, the emperor appointed Ieyasu Shogun and established his government in Edo (Tokyo). “Shogun means commander-in-chief or the top military commander of a country in feudal Japan (“Shogun | Define Shogun on Dictionary.com”,nd, p.1).” The Tokugawa shoguns ruled Japan for 250 years. Tokugawa Ieyasu was a strict ruler and kept Japan under strict control. In 1633, Ieyasu's successor, shogun Iemitsu, prohibited travel and nearly isolated Japan by reducing contact with the outside world. Trade relations with China and the Netherlands were limited. He also banned all foreign books. Despite the isolation, internal trade and agricultural production improved. Although the Tokugawa government remained stable for several centuries, its position was in constant decline. They faced several problems: the government's financial situation led to higher taxes and riots among the agricultural population, natural disasters, and years of famine that caused riots. This caused further financial problems for the central government. In 1868, the Tokugawa government fell due to political pressure... half of paper... sick or nascent company from a corporate benefactor with a financial stake in the company ("What is capital infusion? definition and meaning",nd, p.1)") by the government. However, most of these companies were too indebted to survive on the bailout funds. From the periods I mentioned above, economic growth continued after 2001, but the economy has fallen into recession three times since 2008. Government spending helped the economy recover in 2010. But in 2011 Japan was hit hard by a 9.0 magnitude earthquake and tsunami stopped production in Japan. After the disaster the economy recovered. Japan's new Prime Minister Shinzo ABE made governance his top priority. In 2013, Japan was named the fourth largest economy in the world Foreign Assessment Center (US), United States, 1981, p.all).”