Japanese Asset Price Bubble：What History Has Told Us?

  After 30 years, the Japanese asset price bubble has already been a piece of history. However, economic development will never stop，and we can't predict whether there will be new bubble crisis in the future. So, what can we learn from the Japanese asset price bubble? What history has told us? As far as I'm concerned, the first lesson we can learn is the dangers of speculative bubbles. The Japanese asset price bubble was fueled by excessive speculation in real estate and stocks, leading to a sharp increase in asset prices that was not supported by underlying economic fundamentals. When the bubble burst, it resulted in a severe recession, which lasted for over a decade.  Japan real estate and stock market changes The second thing is the importance of sound economic policies. The Japanese government's response to the asset price bubble was slow and inadequate, exacerbating the economic downturn. The lesson here is that sound economic policies, such as prudent...