The Linkage of Land Price with the Economy Policy Making Failures of the Japanese Government in the 1990s

The Japanese economic policy experience in the 1990s was the worst observed in the country for manydecades. The government withheld critically important economic information from the public, such as thesize of non-performing loans held by financial institutions, while policy-makers were waiting in vain forthe economy to revive. Certainly there was no leadership in the political arena that would give direction tothe bureaucratic decision making process. Senior ministerial staff continued to make serious mistakesthat were implicitly supported by politicians through their own non-action. The authors share the viewwith Posen (1998) that the major economic problems of Japan during the 1990s arose due to policymaking mistakes within the country. Once lauded for their wise judgement, Japanese bureaucrats are nowviewed by many as having been motivated mainly by their own interests and by costly face-savingmeasures.