This seminar will analyse Japanese macroeconomic policy and experience. There are some fascinating issues, also relevant for other countries. Japan has had a remarkable twenty year experience involving low growth and a long period of budget deficits motivated as Keynesian stimulus. Is there any solution for Japan’s problems? Many of the issues are discussed in more detail in a new departmental Working Paper by Max Corden and Sisira Jayasuriya, both former members of the Arndt-Corden department.