The Bubble Economy of Japan :: Japanese Economy Economics Finances Essays

The Bubble Economy of lacquerThe Economy of lacquer had experience a tremendous appendage since the end of theKorean war. The growth of gross national product in 1967 and 1968 was above 10 % (double digitgrowth period) which outdistance countries such as Britain, France and Germany. The preservation experienced a boost is collectible to many reasons, such as enlargement ofindustrial facilities, abundant accommodation of western technology and education,lower the military expense to 1% of GNP, affinity with power nation, humanresources and their spirit to achieve zero defect political platform. But after the firstand second oil crisis that occur from 1973 onward. The frugality move downwardspartially due to the poor management of economic policy. Although the g overnmenthad attempt to adjust the economic policy but the retrieval was slow. As thesoaring of yen continues the demand for export has increase tremendously. Withthe reside of the United State of this problem, pre sident Reagan and the G5have signed an agreement with lacquer called Plaza Agreement , the agreementstated that the exchange rate of lacquer and Deutschmark can appreciate againstthe U.S. . Since then the yen value began to appreciate, lacquer was goingthrough a period of job balance adjustment. piece Japan is prepare to gothrough a period of trade balance adjustment, it allow for also suffer a period ofrecession, so the government strongly encourage calling activities tostrengthen the economy in order to prevent backwash effect. It was this eventwhich boost up the GNP and raise the exchange rate. With this exchange rateadvantage it stimulate business activity on housing and stock investment whichcreated a blither economy. During this period almost the entire country wasinvolve in get guess or other speculate activities. In this essay it get out prove that land speculative activities had create many negative impacts tothe Japanese society and economy. Firstly, it leave des cribe the cause of landspeculation. Secondly it will discuss on the society and political effects inJapan and lastly it will focus on the economy effects, more over it will includethe aftermath when the bubble collapse.The root of this bubble economy is due the wave of land speculation. The widespread of land speculation activities were mainly because it is profitable. Thespeculative transactions in assets grew and grew and many believe that this willlast for very long period of time. One of the reason that leads to massiveinvestment in the risky activities is because of the success of the Japanese inthe internationalist market during 70*s - 80*s. Many Japanese enterprises and