Analysis of the Reasons for the Excessive Expansion of the Financial Industry——Taking Japan as an Example

DOI

10.2991/assehr.k.211209.294How to use a DOI?

Keywords

Asset price; Inflation; estate market; soaring stock; property prices; Financial; Stability

Abstract

This paper focuses on the analysis of the causes of Japan’s bubble economy in the late 20th century, starting from the huge trade gap between the United States and Japan. This famous Black Swan was caused by The rapid development of Japan’s economy, as well as the skyrocketing yen exchange rate caused by the Plaza Agreement signed by the United States and Japan to ease the trade gap. In the end, the Bank of Japan began to cut interest rates sharply to ease the export difficulties faced by Japanese companies due to the exchange rate, which eventually led to the over-expansion of the housing market and the stock market and the bubble economy. By analyzing the Case of Japan, this paper explores how excessively loose monetary policy and Expansionary fiscal policy can step by step affect and even drag down a huge economy.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Qijia Zhang
PY  - 2021
DA  - 2021/12/15
TI  - Analysis of the Reasons for the Excessive Expansion of the Financial Industry——Taking Japan as an Example
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1819
EP  - 1822
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.294
DO  - 10.2991/assehr.k.211209.294
ID  - Zhang2021
ER  -