Lost Decade in Translation: Did the Us Learn from Japan's Post-Bubble Mistakes?

31 Pages Posted: 15 Dec 2004 Last revised: 14 Aug 2009

See all articles by James Harrigan

James Harrigan

University of Virginia - Department of Economics; National Bureau of Economic Research (NBER)

Kenneth N. Kuttner

Williams College; National Bureau of Economic Research (NBER)

Date Written: November 2004

Abstract

In 1991, the Japanese economy ended a historic expansion and entered a period of stagnation that has yet to abate. Nine years later, the US economy ended a similarly historic expansion. There were many similarities in the two countries' expansions: asset price bubbles, a real investment boom, easy monetary policy, and improvements in government finances. In the wake of bursting bubbles, the Japanese banking system was insolvent and monetary policy was too tight, problems not evident in the US post-bubble period. But the US has worse fiscal and current account imbalances than Japan had at the same stage in the post-bubble era.

Suggested Citation

Harrigan, James and Kuttner, Kenneth N., Lost Decade in Translation: Did the Us Learn from Japan's Post-Bubble Mistakes? (November 2004). NBER Working Paper No. w10938. Available at SSRN: https://ssrn.com/abstract=625569

James Harrigan (Contact Author)

University of Virginia - Department of Economics ( email )

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Kenneth N. Kuttner

Williams College ( email )

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HOME PAGE: http://econ.williams.edu/people/knk1

National Bureau of Economic Research (NBER)

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