Bubble Economy and Its Generation
The Japanese economy survived two oil crises and experienced moderate growth. Inflation settled down and Japan’s trade surplus largely widened in the early 1980s. Everything seemed to be going well. The bubble economy evolved and then burst, which brought prolonged stagnation of some 10 years. As a result, the economy had to pay huge penalties. We deal with these matters in this and the next chapter. This chapter deals with the bubble economy and its causes. First, we explain the properties of the bubble. Second, we discuss accumulated causes leading up to the start of the bubble economy, and the triggering role of monetary and fiscal policies.
KeywordsReal Estate Financial Institution Fiscal Policy Money Supply Capital Gain
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