How was the Heisei depression in Japan caused?

Yasumi Matsumoto*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)


    Japan has been suffering from the Heisei depression since 1991. Instability of the world financial system caused by the abandonment of conversion monetary system was accelerated by huge issue of speculative derivatives, which the US Government fully utilised to finance deficits. Her bitter criticism against huge trade surplus of Japan forced Japanese firms not only to increase direct overseas investment to avoid trade conflicts but also to introduce microelectronics technology to improve competitiveness. A policy treating labourers as same as goods led consumption market stagnant. Though Japanese stuck to the export-oriented policy, the trump card for her economic recovery, it was impossible to boost the economy because counterparts could supply necessities by themselves due to Japanese investment. Full use of computer and microelectronics technology radically changed capital's nature and majority of capitals turned to inefficient excess ones. This situation is actually the most serious cause of the Heisei depression.

    Original languageEnglish
    Pages (from-to)71-83
    Number of pages13
    JournalGlobal Business and Economics Review
    Issue number1
    Publication statusPublished - 2011 Mar


    • Bubble economy
    • Derivatives
    • Development of resource-economising technology
    • Gold-dollar conversion monetary system
    • Heisei depression
    • Japan
    • Microelectronics technology
    • Moral hazard
    • New liberalism
    • Speculation

    ASJC Scopus subject areas

    • Business and International Management
    • Economics and Econometrics


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