Does Japan offer any lessons for the United States?
In the late 1990s, some observers began to make comparisons between the rapid rise in stock prices then taking place in the United States and the escalation in asset values in Japan in the late 1980s. Did Japan's experience, which was followed by more than a decade of stagnation, contain any cautionary lessons for the United States? With the recent slowing in the pace of U.S. economic activity, the question has been asked more earnestly; and while the prevailing view remains that the United States is not Japan, the denials have been less forceful. ; This article compares Japan's experience during the 1980s with U.S. prosperity in the 1990s, trying to discern the extent of similarities and differences. It then provides an overview of how Japanese policymakers responded once economic conditions began to deteriorate. On balance, the author notes, the conclusions are reassuring. Although similarities exist between Japan's economic performance in the 1980s and U.S. experience in the late 1990s, land values, as well as stock prices, rose very rapidly in Japan. Bank lending backed by land also rose very rapidly. This is a critical difference, she stresses, as the subsequent decline in Japanese land values crippled the Japanese banking system and economic activity generally.
Volume (Year): (2001)
Issue (Month): ()
|Contact details of provider:|| Postal: 600 Atlantic Avenue, Boston, Massachusetts 02210|
Web page: http://www.bos.frb.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ronald McKinnon & Kenichi Ohno, 2000.
"The Foreign Exchange Orgins of Japan's Economic Slump and Low Interest Liquidity Trap,"
00010, Stanford University, Department of Economics.
- Ronald McKinnon & Kenichi Ohno, 2001. "The Foreign Exchange Origins of Japan's Economic Slump and Low Interest Liquidity Trap," The World Economy, Wiley Blackwell, vol. 24(3), pages 279-315, 03.
- Ronald McKinnon & Kenichi Ohno, 2000. "The Foreign Exchange Origins of Japan's Economic Slump and Low Interest Liquidity Trap," Working Papers 052000, Hong Kong Institute for Monetary Research.
- Kenneth R. French & James M. Poterba, 1990.
"Were Japanese Stock Prices Too High?,"
NBER Working Papers
3290, National Bureau of Economic Research, Inc.
- Joe Peek & Eric S. Rosengren, 1998.
"Japanese banking problems: implications for Southeast Asia,"
98-7, Federal Reserve Bank of Boston.
- Joe Peek & Eric S. Rosengren, 2002. "Japanese Banking Problems: Implications for Southeast Asia," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.), Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 10, pages 303-332 Central Bank of Chile.
- Joe Peek Eric & S. Rosengren, 2001. "Japanese Banking Problems: Implications For Southeast Asia," Working Papers Central Bank of Chile 121, Central Bank of Chile.
- Michael Hutchison & Kathleen McDill, 1999.
"Are All Banking Crises Alike? The Japanese Experience in International Comparison,"
NBER Working Papers
7253, National Bureau of Economic Research, Inc.
- Hutchison, Michael & McDill, Kathleen, 1999. "Are All Banking Crises Alike? The Japanese Experience in International Comparison," Journal of the Japanese and International Economies, Elsevier, vol. 13(3), pages 155-180, September.
- Hutchison, M. & McDill, K., 1998. "Are All Banking Crises Alike? The Japanese Experience in International Comparison," Papers 99-02, Economisch Institut voor het Midden en Kleinbedrijf-.
- Michael Hutchison & Kathleen McDill, 1999. "Are all banking crises alike? The Japanese experience in international comparison," Pacific Basin Working Paper Series 99-02, Federal Reserve Bank of San Francisco.
- Lynn E. Browne & Karl E. Case, 1992. "How the commercial real estate boom undid the banks," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 36, pages 57-113.
- Lynn Elaine Browne & Rebecca Hellerstein & Jane Sneddon Little, 1998. "Inflation, asset markets, and economic stabilization: lessons from Asia," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 3-32.
- Ben Bernanke & Mark Gertler, 2000.
"Monetary Policy and Asset Price Volatility,"
NBER Working Papers
7559, National Bureau of Economic Research, Inc.
- Ben S. Bernanke & Mark Gertler, 1999. "Monetary policy and asset price volatility," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 77-128.
- Ben S. Bernanke & Mark Gertler, 1999. "Monetary policy and asset price volatility," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 17-51.
- Joe Peek & Eric S. Rosengren, 1992. "Crunching the recovery: bank capital and the role of bank credit," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 36, pages 151-186.
- Lynn E. Browne, 1992. "Why New England went the way of Texas rather than California," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 23-41.
When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:2001:p:3-18:n:3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.