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Formation of a Bubble and Its Background

  • Kenji AramakiEmail author
Chapter

Abstract

Japan experienced a formation of a huge bubble in the 1980s, which turned out to be a prelude to the subsequent two-decade-long economic stagnation. In this chapter, we will look at what happened to the asset price (land and stocks) in Japan in the 1980s (Section 1), and why it happened and, what could (should) have been done to contain the bubble (Section 2). In examining causes of the bubble, we will look at two factors: economic policy management in the 1980s and bank behaviors under financial liberalization from the latter half of the 1970s.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Tokyo Woman’s Christian UniversityTokyoJapan
  2. 2.University of TokyoTokyoJapan

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