The Formation Of Japan's Bubble Economy And The Burst Mechanism And The Implications For China

The 1980s was an important turning-point for Japanese economy. Since WarⅡ, Japanese Economy developed dramatically. It not only gained the quickest rate of economic development, but also became the biggest creditor nation in the world in 1984. Since mid-1980s, assets price rose highly and economics bubble emerged with rapid inflation. Then the bubble economy collapsed in the early 1990s which brought in a decade of stagnant economic growth called"lost decade". Nowadays, Japanese economy still hasn't recovered from the impacts of bubble economy.This article concentrated on mechanism of Japan's bubble economy with the opinions that stock and estate worked as carrier; improper exchange-rate policy, long-term low interest-rate policy and expanded fiscal policy were direct caused. In the mean while, the bubble economy developed on the base of low capability for future economy developed, financial liberalization in haste and unadvisable bank management.At present, some economic phenomenon in China are similar with these in Japan's bubble economy. This article concluded some implications for avoid from stepping into bubble economy from studying mechanism of Japan's bubble economy.