This volume is based on studies of Japanese economic growth continuing on from the “Think Tank 2005 Japan,” during the spring of 2006. It was produced in an effort to resolve a political controversy on the targets for Japanese economic growth. At the time the research was carried out, the Japanese economy was showing signs of moderate recovery after almost 15 years of stagnation/deflation. In planning for the future, some government officials and experts have argued that growth will continue, but at a very slow pace. Japan is a mature economy with an aging population and a large public debt. As a result, it is said, that Japan can anticipate no more than very modest economic growth, perhaps 1.5–2% per year. Such a pessimistic perspective reflects the assumptions that productivity growth will follow recent slow trends and that growth will be checked by the constraints imposed by Japan’s accumulated fiscal deficit. There is fear that seeking a faster growth path would revive inflationary pressure and impair the government’s fiscal stability