W12 Japanese economical crisis ● Lost decades ○ Economic bubble started to burst in 90s ○ Stagnation in economy during 90s-2010 ● Asset bubble ○ Real estate, Stock exponential growth ■ Speculation ○ Easy credit was given with low interest rates ○ Banks lended out ■ Believed stock price will always go up ● Interest rates were raised in 89 ○ Lower inflation ○ Eset decreased ■ stock market loss ● -60% ■ Land value decrease ● -70% ● Banks in NPLs( non-performing loans) ○ Many had gone default ● Credit crunch ○ Slowing business investment ● Deflation ○ Price decreased ■ Consumers spending had been delayed ■ Wages were fixed, ● GDP had been steady ○ Productivity had been slowed down ● Abenomics (2013) ○ Mass eset buying from government ■ ETF ■ REITs ○ Monetary easing ■ Infrastructure, public work ○ Fiscal stimulus ○ Structural reform ○ Seems to show effectiveness, don't know it long term ■ Inflation target 2% has not yet been reached ■ Ended deflation in short term ■ Increased stock market ● Today ○ GDP growth still slow ○ Deflation is still a risk in Japan ○ National debt is high