4 years and 3 months from 1986 to 199 1 February. This is Japan's second great development period after the high-speed economic development in the late 1960s. ?

This round of economic tide is supported by a large number of speculative activities, so with the bursting of the bubble in the early 1990s, Japan's economy experienced a great retrogression, and then entered the Heisei Great Depression.

What happened after the bubble economy burst?

From 65438 to 0989, the Japanese government felt the pressure and the Bank of Japan decided to change the direction of monetary policy. From May 1989 to August 1990, the Bank of Japan raised its discount rate from 2.5% to 6% five times. At the same time, Japan's Ministry of Finance requires all financial institutions to control real estate loans, and the Bank of Japan requires all commercial banks to substantially reduce loans. By 19 1, Japanese commercial banks have actually stopped lending to the real estate industry.

The sudden turn of monetary policy first punctured the bubble in Japanese stock market. 1990, Japan's share price began to fall sharply, falling by more than 40%. The collapse of stock prices has caused great losses to almost all banks, enterprises and securities companies.

Then, the land price in Japan began to drop sharply, by more than 46%, and the real estate market bubble burst. The sudden contraction of monetary policy and the deliberate bursting of the bubble by the central bank are the third mistake of Japanese monetary policy. After the bubble economy burst, the Japanese economy experienced an economic recession of 10 years.