The Lost Decade: Research on the Japanese Asset Price Bubble
DOI:
https://doi.org/10.54691/bcpbm.v45i.4876Keywords:
Assets price bubble; economic activity; Japanese economic miracle; quantitative easing; negative interest rate.Abstract
Due to the burst of Japanese asset price bubble in 1989s, Japan’s economy has started a clearly great depression, specifically manifest as downturn in GDP, decline in economic activity, decrease in the general price level, and manufacturing sector in recession. The burst of bubble directly shows as expansion on credit and money supply, overheating in assets market and economic activity. This paper aims on elaborating and analyzing Japanese unique economic development history after Second World War. This paper also focuses on how the Japanese economic miracle happened and how does Japanese economic miracle came into asset price bubble. Based on those economic policies implemented by Japanese government, including zero interest rate policy (ZIRP), negative interest rate, quantitative easing (QE), qualitative quantitative easing (QQE), and the three arrows of Shinzo Abe, this paper analyzes those policies in economic direction. This paper also researches on some other potentials and secondary influences on Japanese economy, such as Japanese corporate system since 1600s, the involvement of the USA, the plaza accord, several Japanese bank’s bad loans.
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