bubble economy

Japanese economics

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June 23, 2026

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The Japanese "bubble economy" refers to a period in the 1980s characterized by speculative investment in stock shares and real estate. This speculative bubble was fueled by easy credit and led to astronomical price increases in these markets.123

The bursting of this bubble at the beginning of the 1990s triggered a severe economic downturn, often referred to as Japan's "lost decade," marked by stagnant economic growth and a recession. The Japanese financial system, which had become a major international force with dominant banks and the Tokyo Stock Exchange as a large securities market, was seriously affected by the bursting bubble, leading to a prolonged period of recovery.123

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Japan
Economic change
…to be called Japan’s “bubble economy” of the 1980s, which typified an era that combined easy credit with unbridled speculation and eventually drove Japanese equity and real estate markets to astronomical price levels, burst. In 1992–93 this ushered in a deep recession, the severity of which postponed many of…
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…to be called Japan’s “bubble economy” of the 1980s, which typified an era that combined easy credit with unbridled speculation and eventually drove Japanese equity and real estate markets to astronomical price levels, burst. In 1992–93 this ushered in a deep recession, the severity of which postponed many of…
Read More

Tokyo-Yokohama Metropolitan Area
Commerce and finance
…to be called the “bubble economy.” The expression refers to speculation in general, but most particularly to land speculation and to Tokyo, where land prices have been the most outrageously exorbitant in the country. By the early 1990s, however, overinflated stock and land prices led to a “bursting” of…
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…to be called the “bubble economy.” The expression refers to speculation in general, but most particularly to land speculation and to Tokyo, where land prices have been the most outrageously exorbitant in the country. By the early 1990s, however, overinflated stock and land prices led to a “bursting” of…
Read More