alternatehistory.com

It was not too long ago in the 1980's when Japan occupied a position very similar to that which China enjoys today: a rising, booming market enjoying considerable economic growth and competitiveness, which many were pegging to have the potential to surpass the United States as the world's largest economy. But then, in the latter part of the decade, a huge real estate bubble (not unlike the U.S. has experienced only recently) grew as speculation went wild, and when it burst around the onset of the 90's, it sent Japan into a spiral of deflation and stagnation, causing a Lost Decade and a continued sense of stagnation and decline which continues to this day and is further exacerbated by the country's increasingly concerning demographic problems (namely the rapidly aging population and miniscule birth rate).

A good overview of the causes of the bust and events since then can be read here:

http://www.japanechoweb.jp/jew0109/

So what can be done to prevent this bust? Either to prevent the bubble in the first place, or minimizing its fallout (say, if the Bank of Japan had been faster to cut interest rates, as many say they should've done)? What sort of effects would happen if Japan was able to avoid its lost decade and continued to experience growth (even if it's more modest than in the 70's and 80's) and sustainability?
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