LESSONS
What did we learned from the bubble economy of Japan?
1. The adjustment for exchange rate can’t prevent economy from bubbling over. 2. Especially in the period of stable CPI, we should be more careful about asset bubbles in property. 3. We should deal with the relation between economic prosperity now and the long-term sustainable and healthy development of economy.
•In the long run, when we face these two kinds of risks, sacrificing the temporary development of economy and letting the bubble economy enlarge, former is much smaller than latter. In short, in order to avoid following the same old disastrous
causing their real estate bubble to collapse in early 1992 and throwing the country into a severe
financial crisis and long period of economic stagnation(停滞) known as the “Lost Decades.”
LESSONS
蒋小凡 160820101 王莹160820108
From The
Japanese Bubble Economy
Introduction
What is Japanese bubble economy? When did it happen? Why did it happen?
“
The Japanese economy bubble was an asset price bubble from 1986 to 1991，in which real
THANKS FOR WATCHING
蒋小凡 160820101 王莹160820108
Байду номын сангаас
•Because economy is overheated rather than global now. Our government is opposed to raise interest rates in case that economic prosperity is influenced by raising interest rate. The lessons of bubble economy of Japan make us realize a principle.
Year 1985 1986 1987 1988 1989 1990 Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
254.11 260.34 258.43 251.67 251.57 248.95 241.70 237.20 236.91 214.84 203.85 202.75 200.05 184.62 178.83 175.56 166.89 167.82 158.65 154.11 154.78 156.04 162.72 162.13 154.48 153.49 151.56 142.96 140.47 144.52 150.20 147.57 143.03 143.48 135.25 128.25 127.44 129.26 127.23 124.88 124.74 127.20 133.10 133.63 134.45 128.85 123.16 123.63 127.24 127.77 130.35 132.01 138.40 143.92 140.63 141.20 145.06 141.99 143.55 143.62 145.09 145.54 153.19 158.50 153.52 153.78 149.23 147.46 138.96 129.73 129.01 133.72
estate and stock market prices were greatly inflated. The bubble was characterized by rapid acceleration of asset prices and overheated economic activity, as well as an uncontrolled money supply and credit expansion. Japan’s stock average hit an all-time high in 1989,
The Plaza Accord
Financial liberalization
The easy monetary policy after the release of Plaza Accord The neglect of BOJ
Spot rate from 1985 to 1990（Yen per USD）