1.Japanese economy was continuing to grow as a high level since the mid-1950s.

And early 1980s,

stands up to the same level as the United States economy.
It was an export-led economic growth in Japan at that time, Japan has adhered to a fixed exchange
rate system in order to maintain economic growth and continued trade surplus.
So, low-cost products of Japan, critically effected on the United States.
Due to the huge trade surplus against the United States, Japan and West Germany at the time it was
rather get benefits.
So the United States is to increase the monetary value of the two countries through the Plaza Accord
in 1985 and agreed to a lower dollar value.
Therefore, the immediate reaction by the market value of the yen / dollar exchange rate fell to half in
one year.
2. After this Plaza Accord, Japanese exporters met crisis due to largely rose value of yen.
So the Japanese government lowered interest rates from 5% to 2.5%.
However, low interest rates couldnt led to actual investment, so many businesses or individuals
focused on investment of shares and real estate speculation.
Therefore share prices rose 4 times, house prices rose 3 times. This is called Japanese bubble
economy in 1980s. Because of this bubble monetary economy, everyone thought they live very well.
3. In order to deal with this side effects of excessive boom in Japan, the government raised interest
rates in the early 1990s.
.
Rapidly went up House prices fell back quickly.
There were many people who received a loan and bought houses . .
4.