The world's third-largest economy has suffered from a caricature. Yes, Japan fell from its pinnacle in the 1990s because of a property crash, enfeebled banks and a dwindling population. But that was then. It's not falling anymore.
When Japan's economy was stumbling, China became the darling of the commentariat, investors and multinational companies developing supply chains. The mood toward China, however, has soured. Now the international impression of Japan needs to change as well.
Far from fizzling, Japan may be on the cusp of a boom, according to a comprehensive report by Morgan Stanley. Deflation has been stymied, immigration is slowly but surely increasing, and that 2.5 percent jobless rate is driving a surge in capital spending. A lot of that is likely to be on artificial intelligence and robotics.