After 10 dysfunctional years, Japan’s economy is becoming “normal” again, as I was told repeatedly on a visit there last week. From one perspective, that is good news for Japan and for the rest of the world. From another, it raises troubling questions.

Renewed confidence is raising Japan’s sights beyond simply managing crisis. Government is starting to focus on challenges such as the gaping fiscal deficit and rapidly ageing population. Streamlined and profitable industries are on an investment spree, while merged and re-capitalised “megabanks” are itching to expand on global markets.