Dear Steve, It was only March /1999 that the Bank of Japan adopted the "Zero interest rate policy" that induced the call rate up to 0 %. And I think the period of Japanese bubble was 1985-1990 or 1991. Because prices of Japanese real estate had increased until 1991. Recently I completed an article about the bubble economy for the book edited by Gary Dymski. bye Akira At 10:42 AM +1000 00.10.24, Steve Keen wrote: >Hi, > >Very briefly, official interest rates in Japan have been zero from 1990 >until just recently. The reason for this was the massive accumulation of >debt--mainly by Japanese companies--to finance purchases of Japanese real >estate during their Bubble Economy in 1987-89. > >The levels of debt are such that, while before interest profit rates are >nothing out of the ordinary, they would be swamped by interest repaytments >on this debt were interest rates in the normal range of 1-2% after inflation. > >Inflation has also mainly been deflation in the last decade, so that a zero >nominal rate translates as a positive "real" rate. > >Cheers, >steve > >At 10:20 23/10/00 +0100, you wrote: >> >>One real world question that has just struck me is that money market >>rates in Japan are currently less than 1%. >>Does anyone know if the rate of profit in Japan is of this same >>low order? > >Dr. Steve Keen >Senior Lecturer >Economics & Finance >University of Western Sydney Macarthur >Building 11 Room 30, >Goldsmith Avenue, Campbelltown >PO Box 555 Campbelltown NSW 2560 >Australia >s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683 >Home 02 9558-8018 Mobile 0409 716 088 >Home Page: http://bus.macarthur.uws.edu.au/steve-keen/ -- ####################################### MATSUMOTO, Akira Associate Professor on Money and Banking Department of Comprehensive Policy Making Faculty of Law & Letters, EHIME University Matsuyama, Ehime 790-8577, Japan Tel:+81-89-927-9237(office) Fax: +81-89-927-8916 E-mail: amatsu@ll.ehime-u.ac.jp #######################################
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