{
  "id": "RS22960",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RS22960",
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  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
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      "source": "EveryCRSReport.com",
      "id": 348235,
      "date": "2009-05-04",
      "retrieved": "2016-04-07T02:32:38.004520",
      "title": "The Global Financial Crisis: Lessons from Japan\u2019s Lost Decade of the 1990s",
      "summary": "During the 1990s and into the early years of the 21st century, Japan experienced prolonged recessionary economic conditions triggered by the bursting of a bubble in its equity and real estate markets and an ensuing banking crisis. Although the current global financial crisis is much more than Japan\u2019s \u201cGreat Recession\u201d writ large, many have turned to Japan\u2019s experience to either support or oppose various policies and to improve general understanding of the underlying forces of financial crises. \nIn fiscal policy, the Japanese experience has been used both as an example of stimulus packages that did not work and as a rationale for making stimulus packages large enough to help ensure that they would work. Fiscal stimulus did have the desired economic effect in Japan, but it mainly substituted for depressed bank lending and consumer spending. Recovery had to wait until the balance sheets of banks and households had been rehabilitated. Japan also shifted its policy focus toward reducing its fiscal deficit \u201ctoo early\u201d after authorities thought the recession had ended in 1996. The ensuing increase in taxes along with reduced fiscal stimulus (along with the 1997-98 Asian Financial Crisis) pushed the economy back into recession. In monetary policy, the Bank of Japan\u2019s zero-interest rate policy demonstrated the futility of attempting to induce investment and consumer credit purchases through low borrowing rates. The Japanese experience also may be instructive in resolving problems of companies that technically are bankrupt but are being kept alive through outside financial support and in dealing with nationalization and subsequent privatization of insolvent banks. Japan\u2019s case also illustrates that national debt may continue to rise for years after the financial crisis has ended.\nWith respect to rehabilitating banks, Japan\u2019s five bank rescue packages may hold some lessons for the United States. Most of the packages were administered by the Deposit Insurance Corporation of Japan (DICJ). The packages had an announced value of $495 billion. The DICJ reports that it provided $399 billion to Japan\u2019s troubled financial institutions of which it has recovered $195 billion. Overcoming the crisis in Japan\u2019s banks took a combination of capital injections, new laws and regulations, stronger oversight, a reorganization of the banking sector, moderate economic recovery, and several years of banks working off their non-performing loans. This report will be updated as circumstances warrant.",
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc813761/",
      "id": "RS22960_2008Oct02",
      "date": "2008-10-02",
      "retrieved": "2016-03-19T13:57:26",
      "title": "The U.S. Financial Crisis: Lessons from Japan",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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          "filename": "files/20081002_RS22960_ac01b294a520364f4db94bbcea17ef14a5a873e0.html"
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      "topics": []
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs10798/",
      "id": "RS22960_2008Sep29",
      "date": "2008-09-29",
      "retrieved": "2008-12-11T20:32:34",
      "title": "The U.S. Financial Crisis: Lessons from Japan",
      "summary": "Japan's five bank bailout packages in the late 1990s may hold some lessons for the United States. Overcoming the crisis in Japan's banks took a combination of capital injections, new laws and regulations, stronger oversight, a reorganization of the banking sector, moderate economic recovery, and several years of banks working off their non-performing loans.",
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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          "filename": "files/20080929_RS22960_56e1d2d2a37d88a001437056afefee1e9c42665c.html"
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      ],
      "topics": [
        {
          "source": "LIV",
          "id": "Financial crises",
          "name": "Financial crises"
        },
        {
          "source": "LIV",
          "id": "Finance",
          "name": "Finance"
        },
        {
          "source": "LIV",
          "id": "Economic stabilization",
          "name": "Economic stabilization"
        },
        {
          "source": "LIV",
          "id": "Economic policy",
          "name": "Economic policy"
        },
        {
          "source": "LIV",
          "id": "Banks and banking",
          "name": "Banks and banking"
        }
      ]
    }
  ],
  "topics": [
    "Economic Policy"
  ]
}