Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-dlnhk Total loading time: 0 Render date: 2024-11-22T20:40:34.435Z Has data issue: false hasContentIssue false

Chapter 8 - Blowing Bubbles for Political Purposes: Japan in the 1980s

Published online by Cambridge University Press:  06 August 2020

William Quinn
Affiliation:
Queen's University Belfast
John D. Turner
Affiliation:
Queen's University Belfast
Get access

Summary

Chapter 8 examines the land and stock market bubbles that occurred in Japan in the 1980s. In the seven years before its peak, the Japanese stock market appreciated 386 per cent. Similarly, land prices rose by 207 per cent. By August 1992, the Japanese stock market had fallen 62 per cent from its peak, and by 1995, land was 50 per cent below its peak. Both land prices and the stock market continued to fall into the next decade. The chapter then uses the bubble triangle to explain the Japanese land and stock bubbles. These bubbles were purely political creations. Not only did the Japanese government provide the spark, but it systematically cultivated all three sides of the bubble triangle with the explicit goal of generating a boom. This process was clearest in the realm of money and credit, where an expansion was both a central part of Japan’s economic policy and, after the Plaza Accord, an international commitment. The chapter concludes by looking at how the collapse of the Japanese bubbles weakened the country’s banking system, which eventually had to be rescued by the government, and resulted in a stagnant economy for over two decades.

Type
Chapter
Information
Boom and Bust
A Global History of Financial Bubbles
, pp. 134 - 151
Publisher: Cambridge University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×