Japan's Bubble Economy Governance Research

With the global economic development and deepening of economic structural innovation, bubble economy attracts increasing attentions in society. As a country which has been harmed badly by bubble economy,Japan,has suffered from not only the collapse of the assert market,but also ten years depression.Studing Japan's bubble economy management and rethinking the experience and lessons of governance processes is essential to preventing and managing bubble economy and avoiding the long-term depression after the collapse of bubble.This paper mainly studies the origin and the management policy of Japan's bubble economy. Through research we found that the objective conditions forming Japan's bubble economy is long-term interest rates low policy, flood of liquidity, excessive financial liberalization and the lack of financial regulation.But the deep-seated reasons are backwardness advantage disappearance,the lack of innovation ability and slow industrial upgrade.To avoid the occurrence of a bubble economy in China, we should formulate adjusting policies carefully, push forward financial liberalization prudentially ,strengthen financial supervision,promote technology innovation ability and accelerate industrial upgrade.