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Encyclopedia > Japanese asset price bubble
Inflation-adjusted house prices in Japan (1980–2005) compared to house price appreciation the United States, Britain, and Australia (1995–2005).
Inflation-adjusted house prices in Japan (1980–2005) compared to house price appreciation the United States, Britain, and Australia (1995–2005).

The Japanese asset price bubble (バブル景気 baburu keiki, lit. "bubble boom"?) was a time of skyrocketing land and stock prices in the Japanese economy, lasting from 1986 to 1990. It is one of the most famous economic bubbles. Image File history File links Download high resolution version (1142x1179, 117 KB) Summary Plot of inflation-adjusted home price appreciation in Japan (1980–2005) and the United States, Britain, and Australia (1995–2005) given in the Economist magazine article In come the waves: The worldwide rise in house prices is... Image File history File links Download high resolution version (1142x1179, 117 KB) Summary Plot of inflation-adjusted home price appreciation in Japan (1980–2005) and the United States, Britain, and Australia (1995–2005) given in the Economist magazine article In come the waves: The worldwide rise in house prices is... The following text needs to be harmonized with text in the article Japan#Economy. ... 1986 (MCMLXXXVI) was a common year starting on Wednesday of the Gregorian calendar. ... MCMXC redirects here; for the Enigma album, see MCMXC a. ... Currier & Ives print on economic bubbles, 1875. ...


In the decades following World War II, Japan implemented stringent tariffs and policies to encourage the people to save their income. With more money in banks, loans and credit became more easy to obtain, and with Japan running large trade surpluses, the yen was able to appreciate against foreign currencies. This allowed Japanese companies to invest in capital resources much more easily than their competitors, which made goods cheaper, which widened the trade surplus further. And, with the yen appreciating, financial assets became very lucrative. Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000... A tariff is a tax on foreign goods. ... In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan. ... The balance of trade encompasses the activity of exports and imports, like the work of this cargo ship going through the Panama Canal. ... ISO 4217 Code JPY User(s) Japan Inflation -0. ... Invest redirects here. ...


Unfortunately, with so much money readily available for investment, speculation was inevitable, particularly in the Tokyo Stock Exchange and the real estate market. The rates for housing, stocks, and bonds rose so much that at one point the government issued 100-year bonds. Additionally, banks granted increasingly risky loans. The Tokyo Stock Exchange ), or TSE, is one of the largest stock exchange markets in the world by monetary volume located in Tokyo, Japan, second only to the New York Stock Exchange. ...


At the height of the bubble, a commonly-quoted claim was that the land beneath the Imperial Palace in Tokyo was worth more than the entire state of California. Japan regained a sense of national pride and assertiveness as a result of its new power, which manifested itself in works such as The Japan That Can Say No by Shintaro Ishihara and SONY founder Akio Morita. Accounts also report of high-level executives eating gold-sprinkled food and eating with gold chopsticks. Many outside Japan were alarmed by this resurgence, leading to criticism from foreign observers. Michael Crichton, for example, wrote Rising Sun at this time, which highlighted (some say unfairly) problems with the growing Japanese economic power. The Japan that Can Say No (Japanese title: 『「NO」と言える日本』 no to ieru nihon) is an essay written in 1989 in Japanese, co-written by Sony chairman Akio Morita and politician Shintaro Ishihara during Japans successful economic rise in the late 1980s. ... Shintaro Ishihara , born September 30, 1932) is the governor of Tokyo, Japan, and one of Japans most widely known nationalist and populist politicians. ... Akio Morita (盛田昭夫 Morita Akio, January 26, 1921 in Nagoya, Japan - October 3, 1999 in Tokyo) was a co-founder of Sony Corporation. ... General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ... Hashi redirects here. ... John Michael Crichton (born October 23, 1942, pronounced [1]) is an American author, film producer, film director, and television producer. ... Rising Sun is a book (ISBN 0394589424) written in 1992 by Michael Crichton about a murder in the Los Angeles headquarters of a Japanese business. ...


Prices were highest in Tokyo's Ginza district in 1989, with some fetching over US$1.5 million per square meter ($139,000 per square foot), and only slightly less in other areas of Tokyo. By 2004, prime "A" property in Tokyo's financial districts were less than 1/100th of their peak, and Tokyo's residential homes were 1/10th of their peak, but still managed to be listed as the most expensive real estate in the world. Some US$20 trillion (1999 dollars) was wiped out with the combined collapse of the real estate market and the Tokyo stock market. The Ginza area of Tokyo, Japan The Wako department store occupies a busy corner in Ginza Ginza (銀座) is a place in Chūō Ward, Tokyo named after the silver coin foundry or Ginza established here in 1612 (Edo period). ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory[1], the British Virgin Islands, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ...


With Japan's economy driven by its high rates of reinvestment, this crash hit particularly hard. Investments were made increasingly out of the country, and Japanese manufacturing firms lost much of their technological edge. As Japanese products became less competitive overseas, the low consumption rate began to bear on the economy, causing a deflationary spiral. Deflation (economics) Deflation (data compression) Deflation is the removal of loose soil by eolian (wind) processes This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...


The easily obtainable credit that had helped create and engorge the real estate bubble continued to be a problem for several years to come, and as late as 1997, banks were still making loans that had a low guarantee of being repaid. Correcting the credit problem became even more difficult as the government began to subsidize failing banks and businesses, creating many "zombie businesses".


The time after the bubble's collapse (崩壊 hōkai?), which occurred gradually rather than catastrophically, is known as the "lost decade" (失われた10年 ushinawareta jūnen?) in Japan. The 1980s were known as the lost decade for Latin America, in which the area occurred a significant economic depression. ...


See also


  Results from FactBites:
 
ECB: Asset price bubbles and monetary policy (6443 words)
Housing price peak-to-trough periods are longer on average and, despite the fact that the decline in prices is somewhat smaller, the associated output losses are notably bigger.
Assets are claims to future consumption and it has been argued that the asset price today should be a reasonable proxy for future prices of consumer goods.
Asset price booms that were followed by a sharp drop in real GDP growth rates are labelled as high-cost booms while those that were succeeded by a relatively mild slowdown in real growth are labelled as low-cost booms.
Japanese asset price bubble - Wikipedia, the free encyclopedia (390 words)
The Japanese asset price bubble was a time of skyrocketing land and stock prices in the Japanese economy, lasting from 1986 to 1990.
At the height of the bubble, "it was a matter of pride that the land around the Imperial Palace in Tokyo was at one point worth more than California," the Financial Times said.
Prices were highest in Tokyo's Ginza district in 1989, with some fetching over US $1.5 million per square meter ($139,000 per square foot), and just a bit less exhorbitant in other areas of Tokyo.
  More results at FactBites »

 
 

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