Japan Bubble World Crisis Case Study

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Japan's Bubble Economy in Late 1980s Introduction This paper attempts to understand the environment wherein after three decade long “Economic Miracle,” Japan experienced a bubble economy in late 1980s in which stock, real estate prices, economic activity, money supply and credit inflated to a soaring height. The structure of the paper delineates between macroeconomic and microeconomic issues. After reviewing the factors for the formation of the bubble the paper then proceeds to discuss the collapse of the bubble bursting for Japan. The factors are split into three parts economic, political and social. FORMATION OF THE BUBBLE ECONOMY IN JAPAN The Macro-economy of Japan Among other G-7 industrial countries, Japan experienced the largest…show more content…
In order for a bubble to develop and then burst it requires a significant miscalculation by authorities. However it also requires a failure in the governance structures that are supposed to protect the economy from such harmful outcomes. To avoid another wave of bubble, the market environment should be prepared, ensure policy makers, society and government are controlled, business ethics implemented and international cooperation maintained. References: • Imai, K Nihon ban Bigu Bangu (1997) published Toyo Economics (Japanese) • Miyamoto, M (1995) Straitjacket Society published Kodansha International • Miyajima, H (1994) Japan's Aging Society Japanese Economic Studies Journal Winter 1993-94 Vol 21, No 6 pp 3-25 • Miyazaki, Y (1990) The Dollar and the Yen Japanese Economic Studies Journal Fall 1990 Vol 19, No 1 pp 3-31 • Nakamura, T (1986) Lectures on Modern Japanese Economic History Iwatani Shoten • Nikami, K (1990) Management of Japan's Securities Companies Japanese Economic Studies Journal Fall 1990 Vol 19, No 1 pp

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