what is the lost decade 
the lost decade is commonly used to describe a period in japan beginning in the 1990s during which economic stagnation became one of the longest running economic crises in recorded history later decades are also included in some definitions with the period from 1991 through 2011 or even through 2021 sometimes being referred to as japan s lost decades 1understanding the lost decadethe lost decade is a term initially coined to refer to the decade long economic crisis in japan during the 1990s japan s economy rose meteorically in the decades following world war ii peaking in the 1980s with the largest per capita gross national product gnp in the world japan s export led growth during this period attracted capital and helped drive a trade surplus with the u s to help offset global trade imbalances japan joined other major world economies in the plaza agreement in 1985 in accord with this agreement japan embarked on a period of loose monetary policy in the late 1980s this loose monetary policy led to increased speculation and a soaring stock market and real estate valuations in the early 1990s as it became apparent that the bubble was about to burst the japanese financial ministry raised interest rates and ultimately the stock market crashed and a debt crisis began halting economic growth and leading to what is now known as the lost decade 1 during the 1990s japan s gross domestic product gdp averaged 1 3 significantly lower as compared to other g 7 countries 2 household savings increased but that increase did not translate into demand resulting in deflation for the economy in the following decade japan s gdp growth averaged only 0 5 per year as sustained slow growth carried over right up until the global financial crisis and great recession 2 as a result many refer to the period between 1991 and 2010 as the lost score or the lost 20 years from 2011 to 2019 japan s gdp grew an average of just under 1 0 per year 2 and 2020 marked the onset of a new global recession as governments locked down economic activity in reaction to the covid 19 pandemic together the years from 1990 to the present are sometimes referred to as japan s lost decades the pain is expected to continue for japan according to research from the federal reserve bank of st louis recent growth rates imply that japan s gdp will double in 80 years when previously it doubled every 14 years 3