Download pdf
Causes of Housing Bubble in Japan
- 1 Macau University of Science and Technology
* Author to whom correspondence should be addressed.
Abstract
To find ways to facilitate the development of the real estate economy, this paper examines the Japanese housing bubble of the 1980s, one of the most representative in history. Japan's housing bubble provides us with a good economic model, for which we need to discuss the impact of monetary policy on the housing bubble. Through monetary policy, combined with Taylor's rule, it is analyzed that most of the monetary policy in Japan during that period was in a loose state. Loose monetary policy brought about a series of crises that are detrimental to economic development, such as the rise in land and stock prices, coupled with a series of social problems such as the aging of the population, which ultimately led to the occurrence of the real estate bubble. Japan’s bubble economy provided a good reference for future generations: the government needs to control the degree of easing and strengthen supervision and risk management.
Keywords
monetary policy, housing bubble, Japan
[1]. Ito, T. (2015). The Plaza Agreement and Japan: Reflection on the 30th year Anniversary, James A. Baker III Institute for Public Policy of Rice University.
[2]. Taylor, J.B., 1993. Discretion versus policy rules in practice. Carnegie-Rochester Conference Series on Public Policy 39, 195–214.
[3]. Xu Q. (2015). Re-exploring the causes of Japan's economic bubble after the "Plaza Agreement"——A comparative analysis of Japan and Germany based on the Taylor rule. Journal of Japanese Studies (01), 109-125.
[4]. Okina, K., Shirakawa, M., & Shiratsuka, S. (2001). The asset price bubble and monetary policy: Japan’s experience in the late 1980s and the lessons. Monetary and Economic Studies (special edition), 19(2), 395-450.
[5]. Ito, T. (1994). Public policy and housing in Japan. In Housing markets in the United States and Japan (pp. 215-238). University of Chicago Press.
[6]. Li, J. (2014). Japan's economic recovery under the atmosphere of the Cold War. Journal of China University of Petroleum (Social Science Edition), 201-02
[7]. Chen, J. (2014). The impact of the Plaza Accord on the Japanese economy, China Finance.
[8]. Inamoto, Y., T. Hasegawa, T. Sudo & C. Shimizu (1995) “Chika Bubbles to Tochi Taisaku (Land price bubbles and land measures): 1985-1995,” University of Tokyo Institute of Social Science.
[9]. Kobayashi, M. (2016). The housing market and housing policies in Japan.
[10]. Kawaguchi, Y. (2009). Japan real estate crisis. Hong Kong Monetary Authority. Retrieved from Hong Kong Monetary Authority website: http://www.hkimr.org/uploads/conference_detail/465/con_paper_0_559_kawaguchi. pdf.
[11]. Chen, Y, Kuo, Y, Yao,Y. (2014). The impact of population aging on high savings in China. Financial Studies, 1, 71-84.
[12]. Jurgilas, M., & Lansing, K. J. (2013). Housing bubbles and expected returns to homeownership: Lessons and policy implications. Forthcoming in Property Prices and Real Estate Financing in a Turbulent World, M. Balling and J. Berg,(eds.).
[13]. Nagahata, Takashi and Toshitaka Sekine (2002). The effects of monetary policy on firm investment after the collapse of the asset price bubble: an investigation using Japanese micro data, Research and Statistics Department Working Paper, 02-3, Bank of Japan.
Cite this article
Tang,Y. (2024). Causes of Housing Bubble in Japan. Advances in Economics, Management and Political Sciences,74,288-292.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).