Bubble economy in Japan and its effect on the international market
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| Dokumentumtípus: | Diplomadolgozat |
| Kulcsszavak: | ASEAN BUBBLE bubble economy buborék gazdaság GATT gazdasági válság(ok) Japán japán gazdaság |
| Online Access: | http://dolgozattar.uni-bge.hu/44047 |
| Kivonat: | The Japanese economy has survived the two oil shocks and maintained its annual growth rate of 4%. However, industrial production was mainly export-oriented, and trade frictions between Japan and the US became severe, so in 1985 the G5 agreed at the G5 meeting to revalue the yen and the mark up and the dollar down in order to improve the trade balance. To compensate for this, the government cut the base rate° to its lowest level ever, resulting in a bubble boom between 1987 and 1990. Japanese companies responded to domestic demand by shifting production overseas to avoid high costs. In 1988, the trade balance showed an unprecedented surplus, and from 1987 onwards, stock and property prices rose abnormally. Banks lent heavily to investors to buy property, while the government and the Bank of Japan introduced austerity measures for 1989-1990 and raised the base rate. As a result, stock prices and real estate prices started to fall. |
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