What was the Japanese Bubble economy?

The Japanese Bubble Economy refers to a period of rapid economic growth and soaring asset prices in Japan during the 1980s. This period was characterized by a speculative frenzy fueled by easy credit, booming stock and real estate markets, and high consumer confidence. The bubble reached its peak in the late 1980s when the price of land and stocks soared to unprecedented levels. However, the bubble eventually burst in the early 1990s, leading to a prolonged period of economic stagnation and deflation in Japan, which became known as the “Lost Decade.” The burst of the bubble was caused by factors such as overinvestment, excessive borrowing, and a lack of regulatory oversight. The legacy of the bubble economy continues to impact Japan’s economy and society, and its lessons are studied by economists and policymakers around the world.

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