The Rise and Fall of the Japanese Economic Miracle: Lessons from a 30-Year Stagnation

The Japanese economy experienced a remarkable rise post-World War II, spurred by U.S. reconstruction efforts and strong industrial growth, becoming the world's factory by the 1970s. However, this rapid growth led to the creation of the largest asset bubble in modern history, which burst in the early 1990s, resulting in three decades of economic stagnation. Factors such as aggressive lending practices, governmental oversight, and evolving financial systems contributed to this crisis and have profound implications for understanding today's economic landscape. The struggles of Japan serve as both a cautionary tale and a case study for global economies.