The Japanese Bubble Economy

In every economy there is an event that casts a long shadow over the national consciousness. For the United States it is the Great Depression of the 1930s. For Germany it is the hyperinflation following World War I. Such historical events are firmly imprinted in the collective memory of the nation and greatly influence subsequent economic policy making. In the case of Japan, after World War II, it is certainly the “bubble economy” of the late 1980s, its subsequent bursting, and the financial crisis of the late 1990s. While there is not yet a consensus on the lessons to be