Response to bubble, Bank of Japan Ministry of Finance also, I had a fatal failure.Financial authorities raise interest rates by the Bank of Japan also “total amount control” is also a rudder in the direction of delaying the timing but should be induced to economy is invoked when the uphill, boom continues for a long time slowly, and exacerbate the collapse that began because cut.Is both engines of economic policy, “Bank of Japan, the Ministry of Finance that, because of the reverse thrust together, the Japanese economy had crashed, it was a natural result of.The author puts it, “.Since this crash, the Japanese economy, I have come to now, without even once to recover the full-scale.
But politics and confusion in the unpopular policy of Prime Minister Kiichi Miyazawa that is advertised as the right thing to crush the bubble at the time, tried to Sasaeyo the stock price, Hosokawa coalition government was born.It’s advanced in the shadow of Hosokawa Cabinet of “political reform” of the Ministry of Finance led was “fiscal reform”.This is frustrated by a sudden proposal “consumption tax hike by the name of welfare tax”, but after this, the financial authorities’ spending cuts and people burden route “is going to become a weigh on Japanese economy.
It does not stop the decline in stock prices and land prices, bubble collapse, drew a long tail in a successive collapse of financial institutions.From a point of view of the author, rather than a non-exhaustive of bubble correction, this was of course a matter of course due to the collapse that has gone too far.If you ask preceded the disposal of bad loans, without the economic recovery policy normal, on the contrary, non-performing loans will be increased in a chain.
Thus became abnormal era the economy does not recover even after 10 years since the collapse of the bubble economy.Not glad people “assets decreased in the words of author.It is coming feeling gets dark, and the future’s anxiety, and willing to buy things no longer “period of deflation.Even at the time of the Obuchi cabinet at the time of Murayama Cabinet, there was several times signs of economic recovery, but all did not lead to full-scale at the one step away.Policymakers “Japan can not stand a little after.The Bank of Japan, rising interest rates raised, the Ministry of Finance, too hurry to fiscal consolidation.The author puts it, “.
Japan’s economic society which became the closed state, was to foster a mood of long-awaited Messiah us to break somehow.Having appeared at the timing of the exquisite to there it was a “Koizumi structural reforms”.There, some slogan was repeated as spell.”Privatization of the postal services is the main enclosure of reform,” “structural reform stand the pain,” “a person who has worked well rewarded” and so on “Big Bang”.How far do people would not understand the contents of these.They were also described as being in order to keep up with global standards.However, who the raise the maximum benefit to the long-awaited it, it was not generally known yet.