Hello Taringueros, after a few days today I come to publish an investigation into two phenomena that occurred and occur today, the economic bubble of the 80s (when Japan was going to dominate the world) and the 2 lost decades. Do not crap or copy-paste.
The Japanese Bubble
For the second half of the 80s the Japanese economy was more vigorous than ever, and this generated a speculative phenomenon that was known as Bubble or Bubble economy, this speculation caused the prices of goods to increase a lot in those years but that also the companies will be overvalued.
They were also golden years for investors, as this phenomenon caused shares in the Japanese stock markets to be overvalued as never before. The aforementioned, together with a low interest rate, caused the assets to obtain many benefits and by 1987 there was an excess of credits by financial institutions and the circulating currency increased by more than 10%.
The bubble also influenced the price of land and construction (I will discuss this a little later).
(Bolsa de Valores de Tokio en los 80s)
(Japanese investors in 1988)
Plaza Agreement
In 1985 an important meeting was held at the Plaza Hotel in New York where representatives of the group of 5 were: the United States, France, Germany, the United Kingdom and Japan. What was resolved in that agreement was that the dollar should be depreciated compared to the Yen.
Privatizations and boom in shares
For the start of the bubble it was decided to privatize public services in Japan, and one of the companies to sell was the NTT (Nippon Telegraph and Telephone)
