Analysis Of Japan's Bubble Economy

Since the mid-1980s, with the emergence of asset price bubbles, and the collapse of expansion, Japan's economy has experienced a very rare ups and downs, until today still not out of the shadow of economic recession. There are similarities between China's economic development model and Japan, for example, both countries are investment-led economy, banks are the major sector in the financial system, both countries are export-oriented, with a huge trade surplus from USA, etc.. And the current situation in the macroeconomic and Japan similar to the 1980s: the overheated real estate development, investment overheating, the stock market once deviated from the normal channels finest, this paper analyzed the economic bubble in Japan, to find out the symptoms of China's current economic development, propose appropriate countermeasures and suggestions.This paper can be divided into four main parts, following a brief introduction of the part of the main content.First, the first part is an overview of the bubble economy, the objective is to the concept of the bubble economy, and focus on the economic bubble distinguish easily confused with other concepts, such as the bubble economy and the economic bubble, the bubble economy and inflation, economic and physical bubble economy, Virtual economy. This article is part of the analysis of the data and theoretical basis. The first part of the second element is outlined bubble economy, development and the process of bursting. This paper introduces the process of outlining a mathematical analysis, the focus is on investor sentiment analysis, this paper argues that investors optimistic guidance led to the formation of the bubble economy and development-oriented investor pessimism contributed to the bubble economy. burst.The second part outline the causes of Japan's bubble economy :of specific internal and external factors .the internal aspects of this view that Japan's bubble economy in Japan's economic development will inevitably result, and secondly, the Bank of Japan's monetary policy directly to the three major blunders Japan's economy into the quagmire which is difficult to extricate. Formation of Japan's bubble economy a major external factor is that the US-led Western countries to Japan's large trade surplus with the ground, monetary policy and foreign policy outside of Japan and applied pressure, "Brzezinski principle," "Plaza Agreement" "financial cancer" is the kind of critical input of the three.The third part is outlined the consequences of Japan's bubble economy, in part from the bursting of the bubble economy in the national economy, the financial sector living conditions, and the Government of Japan launched three policy options. the bursting of the bubble of making sustained economic growth depressed asset prices plummeted, and the closure of a large number of enterprises, liabilities on an unprecedented scale, and the unemployment rate climbed for the survival of the financial industry conditions, the bursting of the bubble led to reduced assets, financial credit decline, huge The non-performing assets of the financial industry prospects sinister; difficult problems in the choice of policies, the bursting of the bubble makes financial crisis have increased. The fourth part of this arcticle is analysis of similarities between China and Japan, and in the expansion of the monetary policy, the rapid development of the securities market, and the overheated real estate development as well as the currency appreciation pressure in the Analysis of these similarities after Japan's bubble economy in this paper that the Enlightenment to China have about four aspects: First, monetary policy should be rounded, robust, excessive expansion and contraction may suddenly have a devastating impact on the national economy. Second, monetary policy should be independent and should not be excessive administrative intervention and yield to international pressure. Third, the correct understanding of the domestic currency revaluation pressure to avoid excessive appreciation of the concerns of tightening effect. Fourth, concern about asset prices, strengthen the stock market and real estate market regulation.In this paper, the four reached enlightenment, focuses on the China's current macroeconomic environment has practical significance, it is regrettable that this paper is the analysis of the current China and Japan during the bubble economy of the similarities, not differences in the analysis . Whether from the external environment facing the country, or the domestic specific case, the present China and Japan at that time there are still many differences, but for the existence of the bubble economy, and when the bubble economy burst, the difference between these places is probably the most key areas Fortunately, the key to this is not the existence of the bubble economy or not the problem, but what we can learn a good lesson from the Japan.