Title: Lost Decade (Japan) - Wikipedia
Headings: Lost Decade (Japan)
Lost Decade (Japan)
Contents
Causes
Effects
Interpretation
Legacy
See also
References
Further reading

Content: However, the impact on wages and consumer sentiment was more muted. A Kyodo News poll in January 2014 found that 73% of Japanese respondents had not personally noticed the effects of Abenomics, only 28 percent expected to see a pay raise, and nearly 70% were considering cutting back spending following the increase in the consumption tax. In 2020, Jun Saito of the Japan Center for Economic Research stated that the impact which came from the nation's coronavirus pandemic delivered the "final blow" to Japan's long fledging economy, which had resumed slow growth in 2018. Interpretation
Economist Paul Krugman has argued that Japan's lost decades is an example of a liquidity trap (a situation in which monetary policy is unable to lower nominal interest rates because it is already close to zero). He explained how truly massive the asset bubble was in Japan by 1990, with a tripling of land and stock market prices during the prosperous 1980s. Japan's high personal savings rates, driven in part by the demographics of an aging population, enabled Japanese firms to rely heavily on traditional bank loans from supporting banking networks, as opposed to issuing stock or bonds via the capital markets to acquire funds. The cozy relationship of corporations to banks and the implicit guarantee of a taxpayer bailout of bank deposits created a significant moral hazard problem, leading to an atmosphere of crony capitalism and reduced lending standards. In so doing they helped inflate the bubble economy to grotesque proportions." The Bank of Japan began increasing interest rates in 19