The Recession Of The United States And United Kingdom

The Recession Of The United States And United Kingdom
The Great Recession of 2007–2012, of which several countries are still recovering, including the United States and United Kingdom, shows great
similarity to the Japanese Recession of the 1990s. However, by taking a closer look and identifying the causes of both we become aware of the
differences that make them not so similar after all. The Great Recession had a domino effect beginning in the United States with the fault of subprime
mortgages creating a housing bubble. Whereas Japan's fault lies with the increasing land prices due to investment, in which created a land bubble that
eventually would burst. With the United States and Japan holding high ranks on the Top 10 Exporters in 2014, United States 2nd and Japan 4th, a
recession shows... Show more content on Helpwriting.net ...
The risk was extremely high due to the possibility that the loan would never be paid back. During the 2000s a housing price bubble was beginning
to form within the United States. This was due to those who before could not own a house, suddenly being able to due to subprime mortgages.
Prices rose 90% from 2000 to 2006 (Ueda, 2012) showing a rapid increase in housing prices and therefor increasing the amount further of those who
would never be able to pay their mortgage back. This caused great financial pressure within the United States economy when the federal reserve raised
interest rates within the United States in February 2007.This meant that debts were not being paid by subprime mortgage holders resulting in the
collapse of the subprime mortgage market in mid 2007. A prime example of this is the largest sub prime lender firm within the United States, New
Century Financial. New Century Financial filled for bankruptcy on the 2nd of April 2007. The collapse came with a cut of roughly 3,200 jobs.
(Treanor, 2007) The collapse of the subprime market meant that the housing boom within United States and United Kingdom came to an end and burst
the housing bubble within the United States. (Arestis, Sobreira, and Oreiro, 2010) However, this did not stop the spread of the subprime mortgage. In
the United Kingdom, Bank Northern Rock began to target sub–prime customers. Northern
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The Impact Of The Plaza Accord
The Plaza Accord or Plaza Agreement was the agreement, which signed in 1985 at Plaza Hotel in New York City, among the G
–5 nations which
included France, Germany, the United States, Japan, and the United Kingdom agreed to operate exchange rates by depreciating US dollar relative to
the Japanese yen and the German Deutsche mark. The objective of the Plaza Accord was to correct trade imbalances between the U.S. and Germany
and the U.S. and Japan. Also to help the U.S. improve its huge trade deficit and to stimulate its economy to climb out of the 1980's long recession.
The United States experienced 3% GDP growth during 1983 and 1984 with a current account deficit approaching approximately 3–3.5% of GDP, while
European nations faced a negative GDP growth of –0.7% with huge trade surpluses. The same thing happened to Japan. Trade deficits in general need
foreign financing. During the early to mid 80s, for the United States, Japan and West Germany were buying United States bonds, notes and bills from
their surpluses to finance our current deficits at the expense of their own economies.
In 1985, inflation was low and growth was rapid. Low inflation allowed for low interest rates, however there was a threat of protectionist tariffs
entering the economy. The US was... Show more content on Helpwriting.net ...
The impact of the intervention was immediate and within two years the dollar had fallen relative to Germany Deutsche mark and relative to the Yen.
The Us Economy also became geared more toward exports, while Germany and Japan increased their imports too. This helped resolve the current
account deficits and helped to minimise protectionist policies. However, among the G–5 nations Japan was badly affected, from the Plaza Accord, by
the dramatic rise in the Yen it's exporters unable to remain competitive overseas and Japan also experienced the economic crisis following the Japanese
asset price bubble during the 1990s called the Lost

The Bubble Economy. The Direct Cause Of The Japanese Banking
The Bubble Economy
The direct cause of the Japanese banking crisis was the collapse of the asset price bubble during the late 1980s to the early 1990s.
During 1980s, sustained economic growth and low inflation rate were the main characteristics of macroeconomic environment in Japan. This condition
caused the upward growth expectations of asset prices, uncontrolled credit expansion and financial deregulation.
At the same period, the United States has a substantial increase in the current account deficit and a sharp increase in the foreign trade deficit. In order
to depreciate the U.S. dollar by intervening in currency markets, five countries including France, West Germany, Japan, the United States and the
United Kingdom signed the Plaza ... Show more content on Helpwriting.net ...
At the same time, these financial institutions may loosen their credit standards in order to get higher loan market share. As a consequence, their
lending decisions were based more on collateral requirements rather than cash–flow analysis. In order to accelerate credit–check procedures for loan
approval, many banks transferred the responsibility for loan–risk evaluation from their credit–investigation bureaus to less independent monitoring
bureaus reporting directly to the banks' sales divisions.
The second problem is the defects in corporate governance of Japanese banks. First, because of the structure of bank ownership, few shareholders own
the majority of the total shares, most shareholders have modest control over the management of banks. Second, shareholders lack of incentive so it is
difficult for them to against managements' decisions. Third, the internal and external audit was very limited.
Besides, the central bank in Japan has also been criticized for its role in aggravating the bubble economy. The Bank of Japan used expansionary fiscal
and monetary policies to solve the fears of economic depression. After five rounds monetary easing from January 30, 1986 to May 30, 1989, the
official discount rate

What Is The Role Of Credit And Credit Booms?
The paper concludes the importance of credit to GDP gap, gross external debt to export, and stocks as variables that can be used in crisis
prediction. However, it is the two variables of credit and debt that stand out to be the most relevant, whereas, it could be inferred that stocks are
merely augmented by their presence or can be used in the presence of credit and debt. Thus, The probability of a financial crisis incidence in the list
of candidate countries increases when the share of domestic loans in GDP is growing, stock prices are increasing, and the gross external debt relative
to export is rising.
Historical evidence suggests that credit has a constructive role to play in central bank policy and through modern history; financial ... Show more
content on Helpwriting.net ...
It is possible to miss valuable information about macroeconomics and financial stability if policymakers continue to choose to ignore the behavior of
credit aggregates. However, it is unclear from this study how this information is included in the overall policymaking and regulatory framework, and
via which financial instruments. In terms of policymaking and research, it is safe to assert that credit aggregates contain valuable information about
the likelihood of future financial crises. However, It is not proven to be a perfect predictor, and this is emphasized by the fact that, in some periods,
especially in eras of financial expansion, development and innovation, credit expands to support real economic growth. It is important to keep in mind
that at the same time, historical records show that the recurrent occurrence of financial instability and fragility have more often than not been the result
of credit booms gone bad.
There has been a slow growth trajectory noted all over the world since the latest crisis, and one of the key and largely overlooked reasons for this
disappointing growth is the increasing global burden of debt. Although it is true that low government debt has its benefits and both private and
government debt matter, the main focus should now be on reducing private debt as it is larger than public debt and has the larger and more direct
impact on economic outcomes, and addressing the issues associated with private debt is necessary

Zombie banks
What are 'zombie banks'
The term 'zombie bank' was first introduced by Edward Kane in 1987 to describe a bank that has a negative net worth but still continues to operate. A
negative net worth means that the fair value of assets is lower than the total value of liabilities. Zombie banks usually have large amounts of
non–performing assets on their balance sheets making them unprofitable. A loan is considered to be a non–performing asset if no principal payments
or interest have been paid for 90 days and is therefore seen to be in jeopardy of default. The fair value of an asset that is considered non–performing is
considerably reduced. Zombie banks usually continue to operate until their financial situation is resolved or they are run ... Show more content on
Helpwriting.net ...
As a result, Japan went into a prolonged period of deflation that lasted for most of the 1990's. In order to boost demand, the Japanese government took
a Keynesian approach and went through 10 fiscal stimulus packages in 1990's totaling over 100 trillion yen (10). However, this didn't have the desired
effect on demand because of deflation. Consumers were putting–off purchase decisions because prices were falling. The real GDP stagnated and
average growth between 1990 and 2001 was only 0.37% (12).
The European debt crisis began in 2009 when rating agency's downgraded Greek government and bank debt because Greece's government debt
reached 113% of GDP. Furthermore, in 2010 Greece's budget deficit for 2009 was revised from 3.7% to 12.7% (13). Since then Greece has received
multiple bail–outs and the crisis has spread throughout the Eurozone and many countries like Portugal, Spain, Ireland and Italy have been severely
affected. The Eurozone crisis is a combination of sovereign debt, productivity, private debt, asset bubble and banking crisis. Contrary to BOJ in
1990's, the ECB reacted to the crisis by quickly lowering the interest rate to 1% in May 2009 (14). Furthermore, the ECB started intervening with the
securities market directly in 2010 with the 'Securities Markets Programme', purchase programme to buy bank–issued covered bonds (2011)

Shintaro Ishihara's Summary
Shintaro Ishihara's argues that Japan has the ability and will become first among equals. His mindset was created through the positive economic turn in
Japan after the war, also known as the economic miracle. In addition, the bubble economy only influenced Ishihara even more to think that Japan could
fully compete against the West, especially America. Japan's economic miracle ignited Ishihara's argument that Japan's technological advancements
could potentially lead to more independence from America. Specifically, Japan's technological work on the microchips used in America's entire nuclear
arsenal. America is dependent on Japanese microchips, "without it the U.S. Department of Defense cannot guarantee the precision of its nuclear
weapons".... Show more content on Helpwriting.net ...
Nonetheless, the 1990s was the start of a new American policy in Asia, specifically focused on Japan, and an unrelenting period of competition
"between free–market capitalism and non–capitalist market". However, the 1990s is dubbed as Japan's lost decade, a time "the powerful and
privileged lost while the ordinary people benefited". The lost decade was a "period when the economy imploded, the asset bubble collapsed, banks
teetered on the edge of insolvency, unemployment skyrocketed, suicides increased and the leaders of Japan, Inc. were tarnished by exposes of
pervasive corruption". The lost decade encompassed the loss of money, security, stable families, and the credibility of the nation's leadership. Again, a
part of the lost decade is corruption and "the vast majority of postwar prime ministers have been implicated in corruption scandals". In addition, the
corruption involved the Yakuza, a major gangster organization, they manipulated "bankers and bureaucrats to secure huge loans for speculative and
illegal activities". Therefore, this asset bubble "may have been a giant con game that enriched the mob at public expense", a partial reason for why the
bubble

Tutorial 4 Notes Essay
Business in Asia Tutorial Program Semester 2, 2014 Guide Notes Tutorial 4: Japan: Changing business environment– growth, stagnation and
Abenomics 1. Outline very briefly the main factors that led to the bubble economy of the 1980s and its crash? The appreciation of the Yen following
the Plaza Accords under US pressure and the policy responses. п‚· Japanese industries lost international competitiveness and the economy slowed. The
government loosened monetary policies to counteract this and stimulate the economy. п‚· The supply of money expanded, this money was invested in
domestic assets (real estate and stock market) whose prices went up; as their prices went up people invested more funds, prices went up even more,
then people invested... Show more content on Helpwriting.net ...
(b) Japanese investors do not see any better investment options. In theory they could invest in foreign markets. But in practice there has been strong
'home bias' in investment, and many large pension funds etc have been managed by bureaucrats who have been very conservative. International
conditions have been very volatile and Japanese yen has been seen as a 'safe haven' currency – because Japan as a country is not an indebted country,
say like the US. So, the currency has tended to be quite strong, often appreciating; this reduced the attraction of investing abroad. 4. Why is the
Japanese government in debt, but Japan is a net saver? Recall national income accounts. National savings are not the same as government savings.
National savings = private sector (households + corporates) savings + government savings. Household and corporate savings have been, until very
recently, consistently higher than government borrowings, though household savings have been coming down in line with demographic trends (aging
population). Corporations (firms) have overall – some have invested in foreign countries through FDI – felt that investment options in Japan are poor,
so they have been saving rather than investing. 5. Why have corporate savings increased in Japan, and what does it indicate about business expectations?

Japan 's Financial Environment : Japan Essay
Financial Environment
When it comes to Japan's financial environment one of the first things to note is the vast pile of debt that Japan has accumulated over the years. Japan's
gross debt–to–GDP ratio stands above 240 percent, which is the highest of all OECD countries (The Economist, 2014). In contrast, in 2010 the ratio
was 'only' 178.4 percent. The reason for this huge debt pile is that Japan has had twenty–two consecutive budget deficits (OECD, 2015). And in recent
years these deficits were often over 8 percent of GDP. The main reasons for the rising budget deficits are that government revenues have been stable
as a percentage of GDP, whereas government expenditures have increased steadily (The Economist, 2014). For now, the burden the debt due to
interest payments is limited due to the low interest rates at which Japan is able to borrow. However, an ageing population will make repaying debt in
the future ever harder (OECD, 2015).
The Nikkei 225 Stock Average is Japan's most important stock index. The Nikkei 225 index declined as a result of the Global Financial crisis and
hit a low in February 2009. It was only after Abe took office as prime minister and announced 'Abenomics' that send the Nikkei index up with 57
percent during 2013 (Pattekar, 2015). In 2014 the Nikkei increased with another 5.7 percent and in June 2015 the Nikkei reached a 15–year high.
However, due to economic growth concerns in China, and the effect of that on exports of Japanese companies caused

Japan Yen
The Rise (and Fall) of the Japanese Yen
Lawrence Cifarelli III, Nazanin Ershad, Natthima Sonsoem, Anyesha Mahaptra
University of New Haven
Abstract
This Case study provides an insight to the fluctuations experienced in the currency of Japan, Yen from the late 1990's to recent years. Japan follows the
floating currency monetary policy due to which there is no measures taken on to control the fluctuations. Japan experienced magnificent growth through
the 60's, 70's, and 80's leading into the 90's beginning. In the late 1990's, Japan's economy marked its growth significantly slower, which had then
come to be known as the 'lost decade' due to Japanese Asset Price bubble that collapsed. Eventually the nation faced major issues regarding ... Show
more content on Helpwriting.net ...
For the following issues the Bank of Japan (BoJ) responded by embarking on Quantitative Easing (QE) in the early 2000's which did little to quell the
deflation and Yen Strength that had plagued the nation entirely.
The major problem for the export–heavy nation became the strength of the Yen. When the exporters saw a more expensive Yen, they faced more
difficulty to compete with domestic manufacturers in other nations. Also, due to extremely low rates of interest in Japan, it experienced massive
outflows of capital from retirees and investors looking for yield in other economies such as United States, Europe and Australia.
Subsequently, the Japanese economy maintained a long–lasting recovery beginning in early 2002. However, the path has not always been smooth,
given two "soft patches" (temporary softening in the market) and weakness in some parts of the economy.
Japan commenced on a multi–pronged approach by June 2012 in an urge to end the multi–decade slide that was seen in growth numbers for its
economy. This approach was initiated by Shinzo Abe during his campaign for Prime Minister, once installed as the political leader of Japan's economy
with Hiroki Kuroda installed as the head of the Bank of Japan, the country spurred into putting effort in order to inculcate inflation consequently
inflation back to the nation.
The current Japanese bond market bubble has contributed greatly to the fluctuation of the

Case Study
Introduction In this case we get an entire scenario about how the Japan deflation set in, what were the effects of the deflation on the economy as well
as on the people of Japan. It also mentions about the various reasons because of which Japan was in such a tight grip of Deflation, Depression,
Demographics and Debts Guides us through the steps taken by the government in order to curb this deflation. Imparts a great knowledge to us about
the various economic terms like deflation, self–liquidating credit, Non–Self Liquidating Credit and how the people and economy of a country is
affected by these. Free markets economies are subject to cycles. Economic cycles consist of fluctuating periods of economic expansion and contraction
as measured... Show more content on Helpwriting.net ...
A central bank can inject money into an economy without regard for an established target interest rate (such as the fed funds rate in the U.S.) through
the purchase of government bonds in open–market operations. This is when a central bank purchases a bond, in which case it effectively exchanges it
for cash, which increases the money supply. This is known as the monetization of debt. (It should be noted that open–market operations are also used to
attain and maintain target interest rates, but when a central bank monetizes the debt, it does so without regard for a target interest rate.) In 2001, the
Bank of Japan began to target the money supply instead of interest rates, which helped to moderate deflation and stimulate economic growth.
However, when a central bank injects money into the financial system, banks are left with more money on hand, but also must be willing to lend that
money out. This brings us to the next problem Japan faced: a credit crunch. Credit Crunch A credit crunch is an economic scenario in which banks
have tightened lending requirements and for the most part, do not lend. They may not lend for several reasons, including: 1) the need to hold onto
reserves in order repair their balance sheets after suffering loses, which happened to Japanese banks that had invested heavily in real estate, and 2)
there might be a general pullback

Cause Of The 2008 Financial Crisis
Causes of the 2008 financial crisis
Financial crisis has been prevalent since time immemorial. The world's economies have been continually hit by the same and the 2008 financial crisis
is definitely not the last appearance. The financial sector involves complexity and contains one of the world's largest players and has continually
developed into large conglomerates sometimes too big to control. These financial organizations have developed products that have become hard to
regulate and impose control on which has often led to their collapse. Major world governments and financial institutions, mostly the central banks have
the responsibility to make sure that these organizations are operating both ethically and legally and within the bounds of the law. This is the institution
of supervisory and regulatory roles to monitor them.
Supervisory and regulatory structures have in the past failed to control the activities of these enormous companies dealing in financial solutions
especially where these organizations have become larger than the country's individual economies. The financial companies engage in risks too large for
them to handle in a bid to generate more profits and when these ventures have gone haywire, these companies have sunk.
Foster & Magdoff (2009) wrote that the failure of the international financial markets in 2008 led to the World's worst economic nightmare, with a dip in
the market performance that led to the eventual failure of companies operating therein.

Abenomics Essay
STUDY OF ECONOMIC POLICY OF JAPAN: ABENOMICS
Keywords:
Abenomics, deflation, aggregate demand, asset bubble, fiscal deficit
Abstract
Shinzo Abe, Prime Minister of Japan, has declared the new economic policy package that proposes a key role for aggressive monetary easing,
expansionary fiscal policy and structural reforms; these three arrows are described with the term Abenomics. In this paper we discuss the backgrounds
of Japan's economy the factors which flourished it, the period of stagnation and its reasons, the factors driving to introduce Abenomics and the logic
behind it. We tried to reconcile the reasons behind the weakening of yen against the dollar and rising of stock market since the policy was announced.
This paper makes major points; perhaps the most evident ... Show more content on Helpwriting.net ...
Abenomics takes into account three–pronged approach to re–flate the economy through monetary, fiscal, and structural policies.
These are also known as three arrows of Abenomics: expansionary fiscal policy, expansionarymonetary policy and structural reform.
The first two arrows act as short term stimulus which aims at increasing the aggregate demand. While the third arrow focuses on long–term goals and
aims to deregulate the economy such as to increase the economic efficiency.
Dramatically expansive monetary policy– Goal is to end deflation, lead to an increase in prices to an order of 2% of CPI (around 1% of GDP inflator).
Fiscal stimulus– The Bank of Japan (BoJ) has two goals which include keeping Japanese government bond yield lower than 1%.
Long run growth strategy– This is a complete package in itself. It includes industrial reforms, labor market reforms and IT innovation. The government
is also looking forward towards new market growth and

Monetary Policy And Asset Price Developments
Introduction In 2008–2009, the economy financial crisis has been affected in many countries with a rapidly decreasing in housing prices, follow by a
protracted real estate boom. This has created an interest in the relationship between monetary policy and asset price, and it became a huge debate on
how monetary policy should react to discern deviations of asset price developments. Even before the financial crisis in 2008–2009 happened there also
has been a gigantic debate whether or not central bank should react and counter to the asset price developments. Proponents of a "leaning against"
begin to argue that the central bank is able to prevent limit of asset price increases (Blanchard 2000, Bordo and Jeanne 2002, Borio and Lowe 2002,...
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By analyzed the link between financial asset prices and monetary policy is highly important to achieve a better understanding in the transmission
mechanism of monetary policy, as the changes in financial asset prices is a main role in several channels. We contribute empirical confirmation data on
the relationship between monetary policy and the financial stock market. In the economy, stock prices are among the most strictly monitored asset
prices in the market and stock prices are also frequently seen as being strongly sensitive to economic situation. Bernanke and Kuttner (2005) stated that
some researchers view the stock market as a separate source of macroeconomic volatility to which governmental may wish to acknowledge. Stock
prices often known as volatility and boom–bust cycles and leading to the interest about preserved deviations from their fundamental values. Hence, the
authorize quantitatively the continuation of a stock market respond to the monetary policy changes will not only be significantly related to the study of
the stock market purpose but will also assign to a further research and understanding of the element of monetary policy and further discussion of the
economic impact on stock market. The Taylor Rule Taylor rule has become the common by which monetary policy is suggested in macroeconomic
models in both small and large. They have been

The Disaster Of Space Shuttle Columbia Disaster
Abstract The fragile of complex and large systems, it is argued, is addressed through the catastrophic events that happened in different fields. This
report looks at three serious systemic failures in engineering and finance domains among the history, including the Disaster of Space Shuttle Columbia
in 2003, the Japanese asset bubble in late 1980s and the explosion of Deepwater Horizon in 2010. The research draws upon final reports of NASA,
related magazines and published books. Looking through the lenses of those catastrophes, the analysis reveals the tremendous loss and effect of system
failures and gives a lesson to avoid similar disasters in the future.
Space Shuttle Columbia Disaster On February 1st, 2003, Space Shuttle Columbia was destroyed on its way re–entering Earth and all 7 crew members
died in that accident. Space Shuttle, different from the one–time–used rocket launcher or manned spacecraft, is a partially reusable low earth orbital
spacecraft system operated by the United States National Aeronautics and Space Administration (NASA). Each space shuttle may bring different
missions leave and re–enter Earth several times. Since the final flight of the Space Shuttle Columbia is the 113th flight of the Space Shuttle Program
and Columbia's 28th mission, we will refer 'Space Shuttle Columbia' in its final flight as 'STS–107' in the later passage. STS–107, carried equipment
and 7 crew members, was launched on January 16th, 2013 and was expected to stay in space

Bitcoin Essay
Bitcoin, A Bubble or Good Investment? Cryptocurrency is a digital asset that serves as a medium of exchange with no central authority and was
created to prevent the issue of double spending. This problem is solved with the use of blockchains where miners confirm transactions on a public
ledger. As of today, there are over 1,000 different types of cryptocurrencies, and at least 600 of these have listed market caps of over $100,000.
Bitcoin, Ethereum and Litecoin are top cryptocurrencies trading today with their combined market cap topping $331B. Bitcoin, created in 2009, is the
biggest cryptocurrency and has recently reached a net value of over $270 billion, with much of its growth being in the last few months. This has led to
much... Show more content on Helpwriting.net ...
However, in both cases the investment vehicle was not expected to generate revenue for the investor through dividends or interest. The value of the
asset is based off speculation on what people believe it will be worth and once that confidence in the cryptocurrency wavers, the market cap declines,
hence the volatility of the currency.
The mystery of what cryptocurrency really is and what the future holds for it is another trait of Bitcoin that resembles the buildup of the Tulip mania
bubble. A sense of mystery was created from the colors being unknown for the tulips that were cross bred which assisted in pushing up the values of
tulips. With the U.S Securities and Exchange Commission (SEC) and Commodity Futures Trade Commission (CFTC) taking opposing views on
whether Bitcoin is a commodity or security, the air of mystery due to weak regulations has contributed to its price instability. It can be expected that
the bubble will burst as Bitcoin will increase in the near future. When? That's the million dollar question. As the Bitcoin market surges, it has attracted
increased public attention and everyone wants a piece of the pie. As a result, the market value of Bitcoin increases exponentially. There are
approximately 16 million bitcoins in circulation today from a total of 21 million. With 5 million or less left to be mined, it makes Bitcoin mining very
competitive

Examples Of Housing Bubble In Australia
Housing bubble in Australia
With the consistent increase of property prices and more personal debt than ever before, we assume that there's a housing bubble in Australia. The
statistics show that from 2008 till now, property prices have been going up as a result of increased mortgage debt. When it slows down, that could
cause a property crash. We are sure that there's a housing bubble, but we cannot confirm when it will finally burst although a few area in Australia has
already met a decrease of house prices. There are 3 indicators of the housing bubble in Australia.
First of all, from 2008 to 2015, property prices of all capital cities in Australia have increased rapidly. People have had obsession with buying houses.
At the same time, ... Show more content on Helpwriting.net ...
This is a sign that the housing bubble starts to burst. Secondly, in the past few years, household debt has increased rapidly. On one hand, it has deep
influence on each Australian. With one dollar earned, one Australian is now in debt for two dollars. Australia's debt for property is just lower than
Switzerland in the whole world and doubles as much as America. Compared with the increase of house debt, salaries of Australians have remained
steady, which means people's capacity to repay debt hasn't improved. Australians have been recorded low wage growth. From January to March 2017
wages grew just 0.5 percent. Over the previous year, wages grew a total of 1.9 percent. From 2011–2016 wages grew just 13 percent (Anderson 2017).
Considering price to income ration index, housing affordability in Australia has broadly declined in the past few years. Nevertheless, it's very easy for
anyone to get loans from the bank. People don't need strict assessment of credit to get loans and the government has some policy like first home owners
scheme to encourage house loans. As the interest rate is at the lowest point in history, any boost of the interest rate would cause hundreds of thousands
of households under mortgage depress. In addition, the ease to get loans make more house demand, which eventually make the price going up. If
people can only use their incomes to buy properties, the demand would definitely not as high as nowadays. The American house crash

Essay On Japan Labor Shortage Advantages And Disadvantages
Challenges that created by country characteristics:
1.High land prices
Japan is an island country(see in figure 1), the land area is only 378,000 square kilometers. Land is in short supply, especially in the business district
in Japan. And the price is absolutely the most prohibitive all around the world. This is one of the major obstacles to business expansion in Japan.
Possible measures to deal with shortages include open stores dedicated to delivery, the establishment of standard stores in lower rental areas, or the
development of more profitable shops with smaller kitchen areas.
Figure 1
2. Labor shortage and Japanese labor practices
Because of the lack of young workers from structural rather than temporal changes, including the decline in the birth rate of Japan, labor shortages for
the fast food industry becomes a serious problem. Fast food industry mainly relies on high school graduates and college students part–time staff. Half of
the full–time employees, including the managers, are college graduates.
Therefore, management must provide them with the benefits of Japanese employment practices, such as the seniority system and the lifetime
employment system. Management must also be concerned about the increase in salary levels and prevent them from leaving to ensure the future
potential of employees. In order to address labor shortage challenge, Kentucky Fried Chicken is attracting working conditions by developing a new
system, getting rid of "dirty, dangerous, hard

Is Japan's Stagnant Economy?
Something having no current or flow and often having an unpleasant smell defines the word stagnant. The Japanese economy has been stagnant for
about two decades now. There are many reasons for this 'unpleasant smell'. Firstly, the fiscal policy in Japan, the surplus in savings, its once
economic bubble power and the policy management in Japan put an end to any flow that there once was. Secondly, the Global flow and structural
impediments are a cause of the lack of current. The liberal Democratic Party and Vested Interest Groups and also the monetarist explanation come into
play. Looking at these such topics closely give a better look and realization of Japans stagnant economy. Firstly, in 1997, Japans fiscal policy was
causing output in... Show more content on Helpwriting.net ...
It would, in effect, offset deflation, by constructing an anticipation of escalating prices. Cutting public works could make up the immediate revenue
loss, and the upcoming tax escalation would put Japan's finances on a sturdier path. It is neither too late nor too expensive for Japan to revitalize its
economy by pursuing proper fiscal expansion, financed by the Bank of Japan buying government bonds. A world–class manufacturing power was lead
into a deep slump. Japan has traditionally possessed a remarkably high savings rate and a moderately low consumption rate. Throughout the previous
two decades of recovery and high–speed growth, this 'savings surplus' provided greatly needed capital to private industry in the form of bank loans.
This money was used to build and expand Japan's industrial infrastructure power. However, during the 1990's the 'savings surplus', once the essential
fuel for high–speed development became a stern obstruction, leading to a severe collapse in demand and causing a heavy drag on Japan's economic
recovery. The so–called powerhouse country that was known to be Japan, known to be unstoppable was known never to fall. Japan seemed to be
unstoppable after there amazing recovery post World War II compared to the rest of the effected countries. Japan had an economic bubble in the
1980's to the later part of the decade however; an insidious cancer took root and metastasized in Japan's economic infrastructure. The cancer was vastly
over–inflated

Swot Analysis : Acadia Realty Trust
Overview of REITS
REITS
REITS is a special company that mainly owns and in most cases operates income–producing real estate such as apartments, shopping centers, office
hotels and warehouses. Some REITS also engage in financing real estates. The shares of many REITS are traded on major stock exchanges for
example Boston Properties Inc., General Growth Properties, Inc., Acadia Realty Trust ...; on the other hand, many REITs are public non–listed and
private REITs. There are very strict requirement for a company to qualify as a REIT. The items listed below are some of the basic requirement of REITs:
Organize as a Corporation, business trust or similar association
Be managed by a board of directors or trustees
Have shares that are fully ... Show more content on Helpwriting.net ...
As a result, their main source of income comes from the interest on these investments or by the sales of mortgages. Hybrid REITs are a combination of
both equity and mortgage REITs.
In 1974, there were an even number of REITs between three types 12 equity, 12 Mortgage and 10 Hybrid; however, in 2006, the number of equity
REITs increased to significant number (138) while there were 38 Mortgage REITs. On the other hand, the number of Hybrid REITs had reduced
to only 7. Due to the recent financial crisis, the number of REITs in 2008 reduced to a total of 136 with 113 of them are Equity, 20 are Mortgage and
only 3 Hybrid. As of 2014, due to the recovery of the US economy, the number of REIT increased to 216. Among those, 177 are Equity REITs, 39 are
Mortgage while there are no Hybrid REITs.
REITs offer investors a number of benefits including:
Simple tax treatment: REITs do not pay taxes at the corporate level; only investor's dividends are taxed as ordinary income, capital gain or return of
capital
Diversification: the average performance of REIT has been more or less equal to US common stocks; however, the correlation of the long term return
has been varied. This correlation would prove to be benefit for investors over the past 20 years; in addition, REITs gives investors an opportunity to
invest in income–producing real estate without owning the actual property
Dividends: Stock exchange listed REITs provide a consistent stream of income to investors due to one

Explaining the Decline of Business in 2007
At the onset of this project we came up with the claim that I could use the logarithmic and/or natural log to explain the decline in business. The
way in which this is to be accomplished is by taking all the sales figures from a 31 day period in 2007. We would then take another month with the
same 31 day period and take those figures. After graphing and comparing the two we postulate that the graphs would show the direct decline
graphically of what we will explain in this paper. After graphing the figures we saw that the mathematical model that we had previously used would
not be adequate with the explanation. So we then did another 31 day comparative between a 31 day period in 2007. Then again in 2013. These figures
were then compared to the national average for hotels for the same period. The interesting fact that came about was the direct correlation between the
falls in sales figures both nationally and here in south Florida and the corresponding securitization and real estate bubble burst. What we will do in the
following pages is explain what led up to the bubble burst as well as some of the mathematical approaches in explaining the bursts. Every economic
bubble in history started with reckless expansion of money supply and credit, reckless manipulation of interest rates, or government promotions of
"low–risk" something for nothing schemes. We saw this happen during the Reagan administration with the low interest rates given. Hence the new
popular movie Wolf on Wall

JAPANвЂ™S ANNUAL MONEY SUPPLY GROWTH RATE
JAPAN'S ANNUAL MONEY SUPPLY GROWTH RATE
In November, Japan's industrial production increased output of cars for foreign customers. However, the nation's retail sales continued to fall. The
output of Japan's factories and mines gained significantly. The output will reinforce expectations that recover in overseas demand. The various efforts
could help prevent Japan's economy from going back into recession of growth.
The works of the U.S. and China will continue the upward trend in output thanks to the demands. Manufacturers are expecting their output to rise 3.4 %
in December. However, other data shows that Japan's domestic demand remains weak. This will keep the nation's recovery vulnerable to slowdown in
overseas growth. ... Show more content on Helpwriting.net ...
Like the rest of the world, Japan has in fact been experiencing inflation. The Bank of Japan increased its annual inflation rate to 1.8% from 1.1%. Japan
will increase in consumer prices (goods and services) which should lead to higher company profits and wages, and domestic spending in the economy.
Japan's increase is mainly imported and increasing food and energy prices. Japan is an importer of goods and Japanese companies are not benefitting
from this inflationary environment. In 1992, stocks fell, and real estate and assets were affected and they call this the," Bubble Burst". How this came
about is the financial system was dominated between politician, financial institutions, and regulatory authorities and they limited bankruptcy.
Regulatory and market innovations subsidized risk taking from both financial institutions and their business clients. Monetary policy focused Japan's
yen appreciation and high GDP growth rates, low inflation rates, and made asset values increase. Increased monetary growth led to increased bank
lending.
This increased the demand for land, real estate, and equities. During the time of the Bubble Burst low interest rates led to rising asset prices. The bank
of Japan raised the discount rate with tight monetary policy for four years. The decline in the assets prices weakened bank balance sheets, investments,
and consumption

The Role Of Production And Employment On Australia 's Economy
Part A The roles of production and employment in Australia's economy is crucial as they are in an interrelationship with all sectors and this is the
basis of how money and resources are distributed throughout a country. This is because employees help make the goods and services which we as
consumers use and then they get paid to do so but then the employees buy these goods and services with the money which they earned. Not only do
workers help one another via supplying each other with money and resources but they also help the Government's budget by giving them their taxation
income. With this money, the Government can then use it to support the people of the nation by providing benefits such as welfare benefits and public
services. All... Show more content on Helpwriting.net ...
The video game crash peaked at around 3.2 billion dollars in 1983 and then fell to approximately 100 millions dollars by 1985 and this caused one of
the major companies of the time (Atari) going from 10,000 employees in Silicon valley to less than a thousand in six months. Some of the key sectors
in Australia is retail, fishing, education and training, construction and transport. In 2016, the retail market in Australia is currently in a downfall state
with self–service checkouts taking over human workers due to them having a better return on investment whereas in the 1990s, it was a flourishing
and rising employer due to the increases in the amount of shops being opened and because there were more spenders. This is shown by retail trades'
employment increase of approximately 18% from 1989–1999. Another example is in the transport sector; this sector is on the brink of being taken
over by artificial intelligence (self–driving vehicles) within the next few years. Currently, there are already some cars on the road which are fully
automated such as Google's self–driving car which can drive relatively safely as shown in the many test trials for the car. Meanwhile, in the 1990s it
was a fully manual service with human drivers driving the car; it was also a increasing employer (from 1989–1999 it increased

Delivering Alpha
Organized by CNBC and Institutional Investor Forums for the third year in a row, the Delivering Alpha Conference did not disappoint. World hedge
fund titans or more commonly known on CNBC as "Masters of the Universe" descended at the Pierre Hotel in New York City on July 17.
Well–known hedge fund managers such as Carl Icahn, John Paulson, Nelson Peltz, Leon Cooperman and James Chanos, just to name a few, divulged
their sought after stock picks along with solid reasoning and what lies ahead for stock and bond markets.
The opening remarks by Treasury secretary Jacob J. Lew provided his views on the current situation of the U.S. economy and regulation post the 2008
crisis. Perry Partners CEO Richard Perry suggested that Europe is 2–3 ... Show more content on Helpwriting.net ...
While Chris Hohn, Founder of the Children's Investment Fund, suggested buying EADS (Airbus) which will likely double in price over the next
two to three years, as well as buying Porsche now gets an investor in at a 30% discount whereas Volkswagen will double in two years, and Aurizon
(Australian railroad) will likely double in the next three years due to its more focused approach on profits.
Legendary short seller Jim Chanos, Founder of Kynikos Associates the largest exclusive short seller in the world, presented his views on why
Caterpillar, due to accounting issues and the lack of growth, is a short as well as his older short HP is still in place. Mark Kingdon, President of
Kingdon Capital Management, suggested going long the following Japanese stocks with low PE ratios (Mazda, Fuji Heavy (Subaru) and Toyota as
well as a pharmaceutical firm called Aegerion will have good returns over the next 12–18 months. When it comes to Powering America the panel
suggested that natural gas is cheaper and investors should include natural resources in a portfolio for protection against an inflationary environment
with a panelist suggesting a long position in Whiting Petroleum. Activist investor Nelson Peltz was asked about his long position in DuPont and did
not comment, but discussed his stakes in Pepsico and Mondelez and suggested two scenarios for Pepsico to follow.
During the luncheon speech John Paulson suggested the best investment now is buying a

Behavioral Finance
Behavioral Finance
Jay R. Ritter
Cordell Professor of Finance
University of Florida
P.O. Box 117168
Gainesville FL 32611–7168 http://bear.cba.ufl.edu/ritter jay.ritter@cba.ufl.edu
(352) 846–2837
Published, with minor modifications, in the
Pacific–Basin Finance Journal Vol. 11, No. 4, (September 2003) pp. 429–437.
Abstract
This article provides a brief introduction to behavioral finance. Behavioral finance encompasses research that drops the traditional assumptions of
expected utility maximization with rational investors in efficient markets. The two building blocks of behavioral finance are cognitive psychology
(how people think) and the limits to arbitrage (when markets will be inefficient).
The growth of behavioral ... Show more content on Helpwriting.net ...
This is especially true when one is dealing with a large market, such as the Japanese stock market in the late 1980s or the U.S. market for technology
stocks in the late 1990s. Arbitrageurs that attempted to short Japanese stocks in mid1987 and hedge by going long in U.S. stocks were right in the long
run, but they lost huge amounts of money in October 1987 when the U.S. market crashed by more than the Japanese market (because of Japanese
government intervention). If the arbitrageurs have limited funds, they would be forced to cover their positions just when the relative misvaluations
were greatest, resulting in additional buying pressure for Japanese stocks just when they were most overvalued!
2. Cognitive Biases
Cognitive psychologists have documented many patterns regarding how people behave.
Some of these patterns are as follows:
Heuristics
Heuristics, or rules of thumb, make decision–making easier. But they can sometimes lead to biases, especially when things change. These can lead to
suboptimal investment decisions.

When faced with N choices for how to invest retirement money, many people allocate using the
1/N rule. If there are three funds, one–third goes into each. If two are stock funds, two–thirds goes into equities. If one of the three

Japanese Economy During The World War
Introduction Since the Second World War, the Japanese economy had experienced remarkable growth, transforming from a developing to an advanced
developed economy in a single generation. However, on the edge of a three–decade long "Economic Miracle," in the late 1980s, Japan faced its
regrettable "bubble economy" in which asset prices rapidly soared, money supply and credit underwent sizable increase, and economic activity
overheated for a prolonged period (Okina p.396). At the bubble's peak in 1989, the Japanese stock market obtained a value of around $4 trillion,
reaching the benchmark Nikkei 225 stock average of ВҐ38,915 (four times the level they had been in 1983) (Siebert p.9). This was approximately 44
percent of the world's equity market capitalization (Stone p.149). At around similar time frame, Japan also saw a spectacular surge in land prices
with the land values five times that of the United States (Stone p.149). Hence, during this time, the economy relished an investment and consumption
boom to the extent that Japan rapidly became known as the world's largest creditor country. However, such record growth fell drastically with the
burst of the bubble: the stock market plummeted by over 60 percent from its peak in 1989 to 1992 while speculative land prices fell over 50 percent
and essential land prices declined by about 15 to 20 percent (Okina p.397). Overall, the bursting of the bubble resulted in a detrimental decline in asset
prices, the accumulation of enormous

Monetary Policy Adopted On Bubble Economy Period Of...
The topic of this dissertation is to discuss the monetary policy adopted in bubble economy period of Japanese. As Japanese economics is a specific
example around the world. The Japanese government adopted many effective ways to revitalize the economy with the result that its economy rose
abruptly after the World war II. However, because Japan entered a liquidity trap around 1990s, and experienced a "Lost Decade" (Hiyashi and Prescott,
2002), the government experienced many economic problems such as of slow growth, deflation, and continues nethermore output (Daniel, 2009) In
this dissertation, the following parts will be given: Literature review, data description, test result discussion and conclusion.
Briefly speaking, the literature ... Show more content on Helpwriting.net ...
Finally, a conclusion will be provided at the end of this section. At the end of this dissertation, there is a final conclusion will be given, the conclusion
will cover the reason whether the monetary policy adopted by Bank of Japan was wrong. It will also give some suggestions about the monetary policy
according to Japan's economy.
In general, the point of this dissertation is to focus on the monetary policy of Japan during bubble economy period and to identify whether Bank of
Japan did right or wrong in such period.
Literature Review
The background of Japanese Monetary policy in Bubble economy period
As Walsh (2003) said that, 'a social loss function dependent oninflation and output gap is the appropriate objective of monetary policy' which
indicates that the level of inflation and output are the major factors that affect monetary policy of all countries. Moreover, Castelnuovo and Surico
(2010) claimed that inflation are the key elements to decided a monetary policy for a county. For the Japan economy, it experienced a disaster during
the period 1986–1991, which named Japanese asset price bubble (Wood, Christopher, 2005). It leaded a long term economic depression japan after that.
The main reason for the bubble economy is the extremely high inflation rate and output. As mentioned before, Japan was sustained a rapid development
after world war II, the main industry of Japan is manufacturing industry. After the Plaza Accord

Dystopian Anime
Japanese Anime is different from traditional cartoon. Cartoon is more suitable for children to watch whereas anime is more for teenage or adult
viewing. The anime genre can be very wide from comedy, to cyberpunk, to super robot. Many of the science fiction anime share the same idea of
dystopia.
Dystopia is describing an imaginary universe which is opposite with the Utopia society, it shows the illusion of a perfect condition society. In fact the
society is controlled by the government in different way including propaganda, information thought and freedom. In the Dystopia world, citizen are
usually under surveillance and lived in a dehumanized condition inside the dystopian society. Most of the dystopian Japanese anime are based heavily
on a science–fiction setting. For example, Akira, Metropolis, Eden of the East, Code Geass, Psycho–Pass.
The film Akira is one of the most famous Dystopia animation in Japan. It was ... Show more content on Helpwriting.net ...
The stock market prices increased rapidly and erupted in 1990. This caused the biggest loss of wealth in Japan. This estate bubble also leaded to
severe financial crisis and the period of economic stagnation which called "Lost Decades". We can see there are certain connection between the crisis
and the background of Neo–Tokyo. The Neo–Tokyo seems to be very flourishing and modern which is similar with the blooming economy from 1986
to 1990 in Japan. However, the Neo– Tokyo government is secretly conducting human experiment, the state is full of protesters against solider and the
education system is corrupted. The city is remaining unstable. This background gives us a hint of the horrific human evolution in the future.
Simultaneously, Japan is also transforming from "Classical" or "Traditional" cultural to a more "modernised" cultural of economic and business
condition. Some of the scenes appeared to be bloody, violent and terrifying (Tetsuo is assaulted by massive toys in the hospital

A Random Walk Down Wall Street Book Analysis
Introduction to "A Malkiel Random Walk Down Wall Street" If you are a new investor who is interested in investment history or how to make
investments, purchase this book by Burton G. Malkiel. This book is ideal for any experienced investor who wants to brush up on their knowledge of
investment techniques and theories also. There are not many books that have been written about investing. A Random Walk Down Wall Street is
broken down into four parts which include; Stocks and Their Value, How the Pros Play the Biggest Game in Town, The New Investment Technology
and A Practical Guide for Random Walkers and Other Investors. In total, there are fifteen chapters that cover a lot of key points that many will find
interesting and informative.... Show more content on Helpwriting.net ...
He is also an economist that specializes in securities markets and investment behavior. In addition to these qualifications, Burton Malkiel has been a
lifelong investor.
The South Sea Bubble
Throughout the text of the book, you will read about different bubbles that occurred in history. Some of these bubbles have happened in the last ten
years and some have happened in the last three hundred years. One of the most interesting bubbles that I read about was "The South Sea Bubble". The
South Sea Company in England was formed in 1711 to create confidence in the government's ability to meet its debts and promises. This company took
a government debt (IOU) for ten million pounds. In return, the government was given monopoly over all trade to the South Seas (Malkiel, Page 41).
People thought there would be a lot of opportunity to make money during this time. In 1720, the entire national debt, which was thirty one million
pounds, was capitalized. The stock rose from 130 pounds to 300 pounds when the bill was introduced to Parliament. After bill became the law, the
South Sea Company sold a new issue of stock at 300 pounds. There were fights that broke out by investors who wanted to purchase this new stock
price at a proposed installment offer. (Figure 1) Figure 1 is an image of what a stock certificate looked like when issued to investors. South Sea
Company reissued a new stock price of 400 pounds. The stock eventually rose to 1000 pounds.

lending market and its aftermath reflec Essays
lending market and its aftermath reflects K&A paradigm: format should be to explain the KAM model, then identify the initial dislocation triggering
the bubble,Describe the Aliber–paradigm. Explain utilizing the housing bubble that has occurred in the past 8 years. Also explain your position on the
bubble housing crisis. Describe the stages of the bubble for the aliber–paradigm. Using the paradigm to explain problems in stock market and housing
bubble burst.
The Leir Center For Financial Bubble Research
Working Paper #1
THE KINDLEBERGER–ALIBER–MINSKY PARADIGM AND THE GLOBAL SUBPRIMEMORTGAGE MELTDOWN
William V. Rapp, The New Jersey Institute of Technology, United States, rappw@adm.njit.edu
ABSTRACT
This paper analyzes the current ... Show more content on Helpwriting.net ...
Further as the KAM paradigm predicts, the subprime mortgage meltdown and its aftermath have brought numerous civil and criminal actions. For
example, mortgage fraud in the US, including Federal and state prosecution, is growing dramatically. Suspicious activity reports related to mortgage
fraud increased over 1000% between 1997 and 2005 and pending FBI mortgage fraud investigations rose from 436 in fiscal 2002 to 1210 in fiscal
2007 (Grant, 2008). The huge increases in the US mortgage market and its increasing complexity have opened many attractive opportunities for
fraudsters across a range of financial activities and institutions. The most common frauds involve "property flipping" or other schemes to get proceeds
from mortgages or property sales via misleading appraisals or false documentation. The SEC is also looking at insider trading related to unexpected
write–downs by publicly traded companies with assets tied to mortgage–backed securities. Further plaintiffs' lawyers and their clients have been active
in making other claims such as misrepresentation or failure to disclose materials information, trying to recover some of the billions of dollars in losses.
However, to grasp the subprime bubble and meltdown in its development, subsequent crash and current aftershocks, one must first understand the key
changes that occurred in the financial markets for

The Current Policy Rate Of The Central Bank Essay
On the other hand, the ZLB is a global phenomenon, "The main policy rate of the central bank is currently at zero (or close to zero) in 22 out of 34
OECD countries" displays the worldwide struggle of central banks since the global financial crisis (Wiederholt, 2015, 1). At the ZLB central banks
must look at unconventional policies, however Japan shows us it remains extremely difficult to stimulate growth and inflation. In 1999 the BOJ
introduce Zero Interest Rate policy (ZIRP) when it lowered in the interest rate to virtually zero. The BOJ also incorporated future policy statements
indicating the rate would remain lower for longer this "is to lower future expected interest rates and thereby boost spending immediately" and cause
reflation (Williams, 2014, 6). However, expected inflation will only increase if the bank credibly commits to its policy and it is merely not
transitional. The BOJ stated ZIRP would remain until "until deflationary concerns disappeared" which is too vague and does not give private agents
enough information, therefore casting doubt on competence of the BOJ (www.boj.or.jp, 1999). Setting an inflation target would help quantify the BOJ
objectives. Krugman (1998) argued for the BOJ to "credibly promise to be irresponsible" and not reverse ZIRP once inflation increases plus set an
inflation target higher than desirable. Bernanke (1999) agrees by setting an inflation target of 3–4% would highlight the movement of BOJ away from
a deflationary regime.

U.s. Japanese Government Policies Essay
Introduction The purpose of this research is to evaluate the effectiveness of a set of the recent Japanese government policies. Before China
overtaking the second largest economy in the world in 2011, Japan has kept the position for several decades. However, after the housing bubbles
burst in 1990s, Japan had economically struggled where it can no longer grow at such a substantial rate as previously. In fact, its economy had
shrunk when other neigbouring economies, such as Taiwan and South Korea, had prospered. So Abe Shinzo was elected as the prime minister of
Japan and he has tried to revive the economy under Abenomics; yet, its impacts on the real economy seem ineffective until recently. This is why I
think it will be interesting to evaluate whether Abenomics was the best option for Japanese government for reviving the economy from the
prolonged recession. Was Abenomics effective? Research questions are as follows: A) Were the uses of monetary and fiscal policies effective
during recession in Japan? B) Will the structural reforms be effective solution for Japanese economy? I will examine the effectiveness of Abenomics
by looking at the historical economic data in Japan from 1980 to 2015. In addition, I will introduce some of literatures and relevant books to support
my view on Abenomics. Literature review Japan's lost decade Hayashi and Prescott (2002) conducted a study on Japan's lost decade to provide a new
interpretation based on neoclassical growth model.

The Effect Of Bubbles And How They Affect Investment
2. The definition of bubbles and how they affect investment This section will focus on the analysis about how bubbles affect investors' behaviors.
Since bubbles are closely connected with crises, doing research on investors' behaviors about overvalued assets can help economists to understand
crises' fundamental. Therefore it is good for governments to take actions to prevent these crises. The first part of this section will describe the
definition of "bubbles" in detail, and the second part will illustrate relevant empirical evidences to further explain how bubbles affect investing
behaviors. 2.1 Theoretical research C. Kindleberger (1978) first defined "bubbles" as a continuously increasing process of assets' price. This
phenomenon... Show more content on Helpwriting.net ...
Finally he found investors' behaviors in terms of the overvalued assets played an important role in this process. Joesph E. Stiglitz (1990) agreed with
the theory above, and suggested that if investors thought assets could be sold over their expectation, they would do more investment, and then assets'
actual price would increase, which also means the bubbles would appearance. He thought it is important to prove the existence of bubbles, since they
can implicate the future decrease of assets' price. Therefore governments could take actions to control investors' behaviors and avoid crises. But by
taking the 1960s crisis as an example, he found bubbles' existence was difficult to test. It is because bubbles would not exist only if the assets' discount
rate increased equal to the assets' price, which means the assets' value would be equal to the discount value. But this equilibrium is not expectable.
Then Stiglitz proposed that the markets might have multiple equilibriums, so he collected many economists' thoughts about this opinion. But he found
models of different economists were developed in terms of different methods, so they cannot reach an agreement. But he suggested that it is still
important for economists to analyze this problem in further studies. Basing on the research of other economists, Robert S. Chirinko and Huntley
Schaller finally built a widely accepted model, Q equation, to test bubbles' existence. The

Advantages Of East Asian Development Model
The so–called East Asian Development Model was devised as a reaction to sustainably high growth rates in many East Asian countries in the
post–World War II period and particularly in the last 40 to 50 years. Generally, there are two competing models of economic developments for
developing countries: On the one hand import–substitution industrialisation (ISI) and on the other hand export–led industrialisation (ELI). Many Latin
American and African countries favoured the former after the Second World War and erected trade barriers, introduced tariffs and tried to promote
local industries. In the first couple of decade particularly South Asian (India) and Southeast Asian countries (Indonesia, Malaysia, Vietnam) also
applied this model to a certain extent. A big exception from the very beginning on, however, was Japan, which was quickly integrated in the world
economy thanks to American support and advocacy and also pursued very active government policies to promote internationally competitive
industries. This resulted in very high average growth rates of 9 % from 1953 to 1965, with the economy gradually slowing to a growth rate of 7–8 %
in the 1970s and further slowing to around 5 % in the 1980s – which, it should be noted, was still far above the rich–world average, thus inspiring the...
Show more content on Helpwriting.net ...
But admittedly even in such a position it is not easy to restructure debt from one sector to the other without creating distortions for the economy,
therefore it still remains to be seen how Japan will deal with its debt issue. Depiction 12 shows the huge shifts in debt position between the different
sectors following the bust of the bubble economy in

Zombie Industry : Zombie Lending And Depressed Restructuring
Finally, some other possible causes will be discussed in this section. First of all, Hoshi and Kashyap (2011) demonstrate that there are three primary
causes of the long recession in 1990s. One of them is "Zombie lending and depressed restructuring". The lax misleading supervisions of the banking
system were extremely serious, but the Japanese government not takes any measure to stop lending money to zombie firms. Zombie firms are defined
as firms are low on production and profit should exit the market but still continue the business by government's support. They kept recruit labor
supposed be work in regular firms lead to decreasing of production. When the assets price falls, most banks losses numerous loans and they could try to
find new customers, but banks followed the policy by government and continued to support existing firms. Zombie firms are grown in number in 1990s
after the "bubble economy". The most important assumption is that zombie firms obstructed the growth of regular firms. If zombie firms did not rose,
there would be more productive firms, more investment and employment. The second part is "Government Regulatory Restrictions". One example is
reported that Long–Term Credit Bank LTCB had lending policies with government that one of the conditions is LTCB must keep supporting small
borrowers. Bank owners were forced to continue leading. Take 1970–2002 as research sample, it can be proved that severer regulated industries lower
productively

Review : Annual Economic Outlook
John Greenwood authored an article entitled "Annual Economic Outlook 2013" which provided the following macroeconomic indices forecast for
2014 for seven (7) leading economies in the world. The speed at which developed economies can repair their balance sheets is most critical to the
household and financial sectors of the US, Eurozone and UK economies. How effectively the developed economies can address the problems of
government sector debt will also have a major impact on economic growth.
Although emerging market economies generally have less indebtedness, their inability to decouple from developed markets undermined their growth
rates in 2013 and was expected to continue to do so in 2014, (Gordon, 2014). The problem for all is that ... Show more content on Helpwriting.net ...
The United States
The US economy was the first to enter recession (2007), and the first to see the effects of the housing crisis seriously impact the banking system
(2008). However, thanks to strong measures to re–capitalize the banks the US banking system is now clearly on the road to recovery. US households
are also making good progress in repairing their balance sheets. The prospects are for continued slow growth of personal incomes (about 3% p.a.) at a
rate that exceeds inflation and therefore supports additional savings and further debt repayment. However, US growth depends on successfully
navigating the so–called "fiscal cliff" – the effective increase in a range of taxes (due to the expiry of several tax cuts enacted previously) amounting
to $400 billion, together with automatic spending cuts amounting to about $90 billion, for a combined total cut in the deficit of close to $500 billion
in a single year, (Visser, 2014). The re–election of President Obama feared that a renewed recession would be enough to enable the two sides in the
US Congress to reach some kind of compromise, although not perhaps to the extent of fully erasing the threat to the US economy. Consequently there
was another year of roughly 2% GDP growth in the US in 2014.
The Eurozone

Macroeconomic Analysis Japan
| |Japan: Macroeconomic Analysis | | | | |Juan Pablo Giraudo | | |... Show more content on Helpwriting.net ...
In addition to the causes above, the following events have further deepened Japan's economic situation during the Lost Decades: 1. Asian Banking
Crisis 1997–1998 2. The Dotcom crisis 2001 3. The Financial Crisis 2008 Macroeconomic Analysis: GDP Japan ranks as the third largest economy
in the world as of 2010. The GDP at current prices in US dollars in Japan was reported at 5068.06 billion in 2009, according to the International
Monetary Fund (IMF). Japan's resurgence after World War II has however reached an inflection point in yearly 1989 after the burst of Japan's
asset price and real estate bubbles. As can be seen from the graph below, Japan's GDP has hovered around the same level through more than 20
years of economic stagnation. The GDP's slow growth has been exacerbated by the world financial crisis of 2008. A major landmark of Japan's
stagnation has been the BOJ's fight against deflation. [pic] [pic] However taking into consideration Japan's GDP deflator and applying a constant
price we can see that Japan's GDP growth does not look so bleak. [pic] In fact until the world economic crisis of 2008 Real GDP has been rising
almost every year. There is no denying that during the Lost Decades Japan's economic growth has stagnated (average annual GDP Growth was 2.20
percent from 1991 to 2010), unemployment rose from 2.1% in 1991 to 4.7% in 2000 and that generally the

The Economic Crisis Of Japan
Introduction Japan enjoyed an Asia's economic miracle that the world witnessed a country that started out poor and had become the second–largest
industrial power during the postwar era. However, a large bubble economy had been irritated by the growth, especially in the stock and asset price
markets, the economy suffered a near catastrophic crash caused by speculative mania(Hall and Von Wiesen, 2014). The Japanese economy has
stagnated after the collapse of bubble economy. The economic situation has been in a wide deflation. In the last two decades, Japanese government took
several measures to solve the deflation problem and spur the economy. There are fiscal expansion, conventional monetary measures, Yen depreciation,
bank recapitalisation, Quantitative Easing, and three arrows of Abenomics. But the situation did not change much, the balance sheet of the country
shows continuous economic recession. The paper is organized in the following way. Section 2 briefly describes the prolonged deflation in Japan.
Section 3 evaluates policies proposed by the government and gives some reasons of unsuccessful policies. Section 4 summarizes the policy
implementation. Background The long–lasting deflation exert a tremendous influence in Japan, the persistent decrease in the level of consumer prices
shrunk profits and investments in corporate, wages and consumption in individuals. This leaded to a further price decline. Such vicious cycle has
caused the recovery of Japanese economy to

The Collapse of the Domino --- Chinese Real Estate
With the outbreak of the U.S. financial crisis in 2008, the whole world's financial situation is not good, but except one, which is China. However,
many people find out that China is walking on the old U.S. economic way, which means China will have economic crisis either. So right now, all the
eyes from all the countries are watching at China's economy, because if Chinese economic collapse, there are no more people buy Japanese
animations and European luxuries. And after the economic crisis, China will recovery U.S. Treasury bonds, but American unable to pay, then the
whole world economy is facing collapse; we can call that butterfly effect. So right now, in this context, the same conditions, and the same nature of the
Chinese economy grows up, any black swan events are likely to be the fuse of Chinese financial crisis, and even the world economic crisis' fuse. For
example, the author of "Chinese Citizens Have Their Eyes on Bubble," C. Cindy Fan mentions that the fuse of Chinese economic crisis is real estate.
Right now, Chinese people put all their savings into real estate, which led to the housing bubble, but because of consumer demand, the government is
unable to stop it. (Fan) I agree with Fan's idea, which is Chinese economy will collapse because of Chinese real estate bubble.
Consequently, whether China will have the financial crisis, the focus should be on the how big is the China's real estate bubble, and when will it
burst. As for how big is the China's real

Japan And The United Kingdom
Japan and the United Kingdom have long been world powers and are now in the top 10 biggest economies of the world; being third and fifth in the
2014 rankings. (Centre for Economics and Business Research. 2015) However, both countries have been hit by a great economic crisis that changed
their economies deeply. Though it occurred on different time frames; 1991 to 2000 for Japan and 2007 to 2012 for the United Kingdom, a lot of
similarities can be found between the causes that started both crises as well as between the development of these crises. However, not everything is
comparable so we can wonder, to what extent are the Japanese recession of the 1990s and the Great Recession of 2007–2012 similar? In order to
answer this question and get a full understanding of both periods, we will first look at the causes of the Great Recession, then have a look at the
causes of the Japanese lost decade and finally, analyse the similarities and differences between the two crises. Japan saw its nation change in 1990
when the Japanese economy stagnated. Indeed, between 1991 and 2003 the Japanese economy only grew 1.14% (of GDP) every year. This is not
enough when compared to other developed countries. (Yuji Horioka, 2006). Alexander, A. J. (2000) states the facts that from the first quarter of
1990 to the first quarter of 2000 the annual increase in real gross domestic product per capita barely exceeded 1 percent, making it very clear that
Japan was in a recession. This is all the

The Recession Of The United States And United Kingdom

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The Recession Of The United States And United Kingdom