Matt Yglesias thinks that Japan did indeed have two lost decades (1990-2007). But I disagree with the arguments he makes. I believe that 2002-2007 were good years for Japan. First of all, Matt cites the fact that Japan's employment-to-population ratio fell steadily from 1990. However, this must be weighed against the fact that Japan is aging extremely rapidly. In particular, the retirement of Japa