The Bubble Economy of Japan :: Japanese Economy Economics Finances Essays

The Bubble Economy of lacquerThe Economy of Japan had insure a tremendous growth since the end of theKorean war. The growth of gross national product in 1967 and 1968 was above 10 % (double digitgrowth tip) which exceed countries much(prenominal) as Britain, France and Ger umteen. Theeconomy experienced a boost is receivable to many reasons, such as enlargement ofindustrial facilities, massive adaptation of westward technology and education,lower the military expense to 1% of GNP, relation with index number nation, humanresources and their spirit to achieve zero defect program. entirely after the firstand second oil crisis that occur from 1973 onward. The economy ply downwardspartially due to the poor management of economic policy. Although the political sympathies military actionhad attempt to adjust the economic policy but the recovery was slow. As thesoaring of yen continues the demand for export has increase tremendously. Withthe concern of the get together State of this problem, president Reagan and the G5have signed an agreement with Japan called shopping mall Agreement , the agreementstated that the exchange rate of Japan and scar can appreciate againstthe U.S. . Since then the yen value began to appreciate, Japan was passagethrough a period of trade correspondence adjustment. While Japan is prepare to gothrough a period of trade balance adjustment, it entrust also suffer a period ofrecession, so the government strongly encourage business activities tostrengthen the economy in orderliness to prevent backwash effect. It was this eventwhich boost up the GNP and hassle the exchange rate. With this exchange rateadvantage it stimulate business activity on housing and stock investiture whichcreated a bubble economy. During this period almost the entire country wasinvolve in land theory or other speculate activities. In this essay itwill adjudicate that land speculative activities had create many negative impacts tothe Japanese edict an d economy. Firstly, it will describe the cause of landspeculation. Secondly it will question on the society and political effects inJapan and at long destination it will focus on the economy effects, more over it will includethe aftermath when the bubble collapse.The root of this bubble economy is due the wave of land speculation. The widespread of land speculation activities were in the main because it is profitable. Thespeculative transactions in assets grew and grew and many believe that this willlast for very long period of time. One of the reason that leads to massiveinvestment in the risky activities is because of the success of the Japanese inthe international securities industry during 70*s - 80*s. Many Japanese enterprises and