3. After：the influence of Japanese asset price bubble

 

After several years bubble burst，the Japanese asset price bubble finally came to an end. No one could have ever expected the Japanese asset price bubble and its subsequent collapse had such a significant influence not only on Japan's economy, but also politics and society. Here are some of the main impacts :

1. Banking system reform. The first thing that had been affected is the banking system. The banking crisis that resulted from the collapse of the asset price bubble led to significant reforms in Japan's banking system. The government injected large amounts of capital into banks, forced the closure of failed banks, and implemented stricter regulations to prevent risky lending practices.

2. Political instability. Because of the bubble crisis, the economic recession and banking system reform created political instability in Japan, as multiple prime ministers were appointed and removed during the 1990s. This led to a period of weak leadership and policy paralysis.

   Toshiki Kaifu                 Kiichi Miyazawa

                                   

3. Global impact. If banking system reform and political instability are just bad news to Japan, then global impact can be the worst. The Japanese asset price bubble had a ripple effect on the global economy, as Japan was a major economic power at the time. The collapse of the bubble led to a decrease in demand for imports and a decrease in global asset prices, which had an impact on other countries' economies.

Overall, the Japanese asset price bubble is like a big war, which has brought crisis not only to Japan but also to the world.