Financial Factors Analysis Of Bubble Economy In Japan

The bubble economy that took place in the eighties of the 20th centuryhas caused serious influence on Japan's economy, it's influence is notdispelled yet so far. There are deep financial reasons in the formation ofJapan's bubble economy, in the Japan's financial liberalization process,because the faults of the defect of Japan's monetary system and macroeconomic policy and alienation of behavior caused economic subject by thishave caused the bubble economy. As our country joins WTO, reform andopening-up will be deepened further, there are very important meanings tostudying Japan's bubble economy conscientiously and takes precautionsagainst financial risks and bubble economy in experience and lessons ofJapan.This text is divided into five parts altogether.First part, General theory analysis of the bubble economy. First of all,we analysis the difination and characteristics of the bubble economy. Thebubble economy is real estate rise deviates from real economy seriously atthe assets price in the market, and the whole course which the companiongrow coming back to the basic price and the general course of othereconomic phenomena with the bubble economy. Bubble economy is thebreeding thing of market economy, it have assets price rise and dropsuddenly and sharply , deteriorate social resource distribution and destroyseriously to real economy continuously. Secondly, we analysis the financialfoundation witch produces the bubble economy. Bubble economy as oneeconomic phenomenon, it have their system foundation to develop of it,monetary system, credit system, share and stock system have offered themonetary system foundation for production of the bubble economy.Meanwhile, the bubble economy is as a kind of economic phenomenonproduced because of fluctuating at the price, cause through investmentbehavior of the economic subject after all. Under the realistic condition,investment behavior alienation and "herd effect" that caused becauseeconomic subject does not have complete information have offered themicro financial foundation for production and inflation of the bubbleeconomy.Second part, Forming, inflation and influencing of Japan's bubbleeconomy. The forming of Japan's bubble economy begins with the signingof "square agreement" of September of 1985, but implementation of theassuage financial policy in order to prevent Japanese money increasing ofvalue in Japan, have caused the surplus of the money supply. Impelled alarge number of funds flow real estates and stock markets, the bubbleeconomy begined to take shape. In 1987, the collapse of the stock market ofNew York once dispelled the foam in some in economy of Japan, but Japanfeared the further increasing of value of Japanese money will cause theturbulence of the world financial market, continue exceeding the assuagefinancial policy, which has stimulated the further inflation of the bubbleeconomy, the bubble economy expanded to the summit pinnacle in 1989.Since August of 1990, Bank of Japan has increased the bank rate of discountfor the fourth times, the bubble economy has collapsed rapidly. The bubbleeconomy has great influence on Japan's economy, since evaporating inbubble economy, Japan's economy has fall into depression for a long time.The third part, the macroscopic financial factors analysis of the Japanbubble economy form. This part expounds the fact Japan macro financialreason that bubble economy form from inherent defect and governmentmacroscopic economic policy fault, At the economic celerity increasingstage in Japan, it is important that Japan's unique banking system has beenundoubtedly given infusion to, but with the promotion of economic ripe andglobal economic integration development, the inherent defect of Japan'sbanking system is revealed out apparently , has become the systemfoundation that bubble economy form. Meanwhile, in the forming process ofJapan's bubble economy, the fault of government's macro economic policynot only lost the opportune time of preventing the bubble economy formingbut promoted the inflation of the bubble economy instead.The fourth part, the microscopic financial factors analysis of the Japanbubble economy form. This part have expounded the fact Japan microscopicfinancial reason that form bubble economy from Japanese financialmachinery behavior alienation and enterprise department behavior alienation.Because Japan among financial reform of the 20th century has unreasonablesystem arrange and faults in government of macroeconomic policy, marketmechanism unable normal running, make such the financial machinery andenterprise department's behavior alienation take place, the risky behavior ofthe microscopic economy subject has happened , and brought out the bubbleeconomy.The fifth part, the historical experience of Japan's bubble economy andrevelation to China. The financial liberalization reform of Japan was thenecessity of development in the eighties of the 20th century, but Japanshould strengthen management with new essential rules and regulationswhile abolishing original monetary system. But as the responsible institution,...