@jefsid

For 40 years, Japan experienced unusually high economic growth and transformed Japan into one of the most successful countries in the world. An asset price bubble in the late 1980s made Japan's economy sink into a prolonged recession.


1980s became the peak of Japanese companies. Products from electronics companies such as Sony, Panasonic, Toshiba, and Sharp are products that are numerous in many countries. A weak yen is a positive catalyst for Japanese exports. The yen exchange rate against the US dollar reached 256 yen per US dollar in 1985. Japan reached a condition similar to China in the present. The list of Rockefeller Centers by Japanese companies is one of the symbols.

High population growth in the years following World War II continued to decline, driven by the increasing weight of the workload and the cost of living in Japan.
On September 22, 1985, an agreement between 5 major economies (US, United Kingdom, France, West Germany, and Japan), namely the Plaza Accord was ratified. This agreement was carried out as a depreciation against the Japanese yen and West German mark in order to reduce the US trade deficit with these countries. As a result, the yen strengthened 50% against the dollar in two years. In 1988, 1 US dollar was worth 128 yen.

During 1986 - 1991, Japan developed asset prices. To reduce the impact of the yen, the Japanese central bank (Nippon Ginko / Bank of Japan) launched a price policy, meaning the benchmark interest rate was as low as possible so that the yen would no longer continue to be sold and visited. Money, credit and banks are easily obtained. Instantly there was a massive investment in the property sector. Property values ​​in Japan jumped dramatically. At the time, in fact, the value of one square mile of property assets around the Imperial Palace of Japan. The Nikkei Index, a reference for the performance of public companies in Japan, reached a record high in history, 38,915, on December 28, 1989.
The 1980s also became the last decade of the Showa era or Emperor Hirohito's time. The death of Emperor Hirohito on January 7, 1989 became the end of the longest period in the history of the Japanese empire. The next day, January 8, 1989, the Heisei era or the time of Emperor Akihito, began.
Japan's GDP jumped almost threefold from US $ 1.1 trillion in 1980 to US $ 3.05 trillion in 1989. Japan's population during the economic period grew 43.36% from 85 million to 123 million.



Japan's economic miracle ended in the 1990s. The outbreak of the price bubble is a negative factor known as the "Lost Decade". Because of this, a lot of the loans that have been disbursed for investment have stalled and weighed on Japanese banks.
The Japanese economy is slowing down. New employment has shrunk. The user's wages are stagnant and don't rise. Cash consumption because people prefer to save money at the bank not spending it. Indeed, in the midst of unpromising economic conditions, increasing income and expensive goods, saving becomes an attractive choice for people.

Economic growth which in 1990 still reached 5.57% fell to 3.32% in 1991, 0.82% in 1992, and 0.17% in 1993. Economic growth began to increase in 1994 - 1996 before returning fell in 1997 - 1998 as a result of the Asian Financial Crisis.
Japan's GDP reached 3.14 trillion US dollars in 1990 and became the largest economy in the world, in the US. In 1995, as a result of the appreciation of the yen to 80 yen per US dollar, Japan's GDP reached 5.45 trillion US dollars. However, in the following years, the Japanese economy contracted and finally Japan's GDP in 1999 only reached 4.56 trillion US dollars.

Japan still plays an important role in technological innovation. However, Japan has never positioned the internet during a boom in the late 1990s.
Entrepreneurship in Japan is also not very good. Young people in Japan prefer better jobs in the company than starting their own jobs, this is driven by a culture of seniority and loyalty to work.
Japan is helped by investment and business operations in other countries. By investing and producing goods in Asian countries that have low production costs such as China, Vietnam and Indonesia, Japanese companies can keep their product prices cheap. Business operations in the US and Europe provide cash flow for parent companies in Japan.

The popularity of Japanese cultural products such as comics, animated series, and television series also helped boost Japan's image internationally.
In 1993, the Liberal Democratic Party issued its first defeat in the general election since its inception in 1955. This was a reflection of Japanese people's disappointment over the economic conditions that had slowed in the past 3 years.
The Bank of Japan kept the interest rate system close to 0% during the 1990s.

Hope you are satisfied.