Japanese Asset Bubble
About Japanese Asset Bubble
One of the largest asset bubbles in history. Japanese real estate and stock prices reached extraordinary levels. The Nikkei 225 peaked at 38,916 on December 29, 1989. The grounds of the Imperial Palace in Tokyo were theoretically worth more than all of California. Golf club memberships cost millions. The bubble burst in 1990, and Japan entered a lost decade of deflation and stagnation that lasted over 20 years. The Nikkei did not reach its 1989 peak again until 2024, 34 years later. The bubble was caused by loose monetary policy, overconfidence, and the belief that Japanese land prices could only rise.
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