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Collapse of the Bubble and the Start of the Long Stagnation

  • Kenji AramakiEmail author
Chapter

Abstract

In this chapter, we will first provide an overview of how the bubble collapsed at the beginning of the 1990s and what happened to the Japanese economy during the subsequent decades after the collapse of the bubble. Then, to identify the mechanism of the long stagnation, a division of the stagnation period of about two decades until Abenomics (i.e., 1991–2012) into four subperiods is proposed. After the division into subperiods, this chapter focuses on the first subperiod, that is, around seven years from the beginning of the 1990s until the financial crisis that broke out in late 1997. This period can be characterized as the starting period of the long stagnation and, therefore, is very important in that its examination should be able to give clues for the fundamental mechanism of the stagnation.

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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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