Factors involved in the birth of the bubble main article: Economy of Japan Various studies have attempted to clarify the reasons that led to a strong Japanese economy as a crisis of such dimensions. When the bubble burst, many thought that Japan had advanced to the United States and had become the leading economic superpower. After World War II Japan experienced an extraordinary development. In the 1955-1972 period, Japan’s economy grew an average of 10 annually. SSGA has similar goals. From 1975 to 1990 the growth was more moderate but still high: 4 . Since 1990, growth stagnated at 1 . economic model explained, to Western eyes, the prosperity of China. Paradoxically, this model was, according to some analysts, the cause of the crisis.The Japanese economy was heavily influenced by the cultural values of Confucianism, Taoism and Buddhism. ng this issue. The capitalist paternalism the age as a paradigm for the authority, the tradition of consensus in making decisions affecting the economy , economic protectionism linked to a strong nationalism, the overregulation of the labor market and worker identification with the company (which in large corporations guaranteed employment for life) had ensured the efficient running of the production system. On the other hand, the Japanese corporate structure did not resemble the West. In Japan ruled what is called the “corporate governance” and the “main bank system” (main bank system). The latter concept refers to the network of ‘keiretsus (business groups) that usually had a structure whose top was a financial institution under which extended a series of cross-shareholding companies.The “keiretsus” had as little transparency principal financial default (which, apparently, would be decisive for the subsequent crisis.) As for the “corporate governance” was a strong interrelationship between the political, academic and business, according to which the operation of Japanese society in all areas, was guaranteed by the business elite with the acquiescence government. Another feature of the Japanese economy was its export-oriented, allowing the entry of large amounts of foreign capital in the form of benefits. The abundance of wealth was also crucial to explain the rise in prices for the period 1980-1990. Reports from the Bank of Japan citation needed , other factors that catalyzed the bubble were the increased demand, the easing of monetary policy and excessive demand for housing for tax reasons.Some analysts dispute that the impact of the benefits produced by exports were the real cause of the bubble. According to this line of analysis, exporting firms were relatively independent of the “main bank”, and then the “main bank system” had changed its structure: the majority of institutions had addressed its financial activities to the domestic market, incidentally, towards the construction and real estate companies. The heavy reliance on financial sector of these companies explain the subsequent collapse of Japanese banks, following the depreciation of the real estate.
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