Investigating the evolution of the Japanese bubble economy
Investigating the evolution of the Japanese Bubble Economy Japan's bubble economy of the late 1980s was one of the most significant economic events in world history. Defined by rapid and unsustainable growth in the stock and property markets, the Japanese bubble formed in response to the strong economic situation of the time, before slowly collapsing and dragging the nation into one of the longest and deepest recessions in its modern history. So how exactly did the bubble come to be, and what events led to its shattering collapse? It all started in the 1980s, a period the Japanese refer to as the "bubble economy." The nation had been undergoing a period of strong economic growth, characterized by low unemployment, strong exports and a booming stock market. However, Japan's Ministry of Finance (MOF) failed to recognize that Japan's economy was growing beyond a sustainable level and continued to encourage capital inflows until the excesses of the bubble burst in t...