Obviously, at the end of the 1980s, Japan’s financial system had lost its ability to regulate the real economy, blindly turning away from reality. In 1989, the governor of the Bank of Japan Mie Noyasu took office. He has a series of titles, “Heisei Ghost”, “Mie Wild Hell”, and “Anti-bubble Fighter”. He launched a series of fiscal austerity policies to cool the financial market and pledged and take the initiative to burst the economic bubble. Policies like these are indeed very effective. In 1992, real estate prices collapsed, and the stock market fell by more than 30%. No matter whether it was in the market or in the private sector, money soon disappeared, deflation began, and Japan entered a recession. It was difficult to change from luxury to frugality. People could not accept this ups and downs, so many of them chose to commit suicide. Japan entered an economic crisis. However, the Bank of Japan did not print money to rescue the market. The fiscal austerity policy prolonged the recession. In fact, Mie Yeyasu’s series of policies are using the crisis to force Japan to carry out its economy reform. After this great ups and downs, the Japanese economy has become “half-dead”, and the reforms and monetary policy introduced by the government afterwards have all fallen to nothing. In fact, Japan has always been a mystery in economics. It is ruthlessly mocking the classic monetary theory. Japan has entered a low-desire society in the 21st century. Then everyone does not consume, saves money in the bank, and does not invest. Once money stops mobility means that wealth cannot be created. From 2001 to 2020, the Bank of Japan has carried out countless rounds of quantitative easing, which is what we call QE, commonly known as left-handed printing money and right-handed spending. Even QE is not strong enough. In 2012, Abe came to power and made a QQE. The full name is “Different Dimensional Quantitative Easing”. The name is very Japanese. In fact, it is unlimited QE, but it is still useless. The GDP just doesn’t move upward. Under the general environment of the Japanese economy, the high-tech industry can still maintain the world’s advanced level. This is probably more a miracle than the economic take-off in the 1960s and 1970s. Many people think that Japan’s industries were killed by the United States, that’s right, the United States has indeed played a role in fueling the flames. Japan’s policy issues are very large, but it often has no choice. After all, under pressure from the United States, the best solution that can revitalize the economy has been blocked. However, we must also see that Japan’s blind self-confidence and excessive consumption in the 1980s and 1990s were also the culprits of the status quo.

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