Credit crunch: JapanÆs lessons for the US

JapanÆs experience in the 1990s shows that a credit crunch can destroy wealth and dampen growth in the real economy for years. The US won't be immune.

There has been a great deal of speculation in the Western press about what lessons the US can learn from JapanÆs credit crisis in the 1990s. Generally, the comparison ends on a note of self-congratulation, with the author pointing out the speed at which US firms have moved to reveal losses, re-capitalising via sovereign wealth funds in some cases, and how quickly the Federal Reserve has cut interest rates.

By contrast, it took many years before the Japanese, under the...

To continue reading, please login or register for free

Click for more on: japan | us | credit | equity | lesson

Print Edition

FinanceAsia Print Edition

CONFERENCES