Article: Does Japan offer any lessons for the United States?(stock market bubble burst)(Column)(Statistical Data Included)

Executive Vice President and Director of Research, Federal Reserve Bank of Boston. The author thanks Jennifer Duval for valuable research assistance.

Note: This article was written before the events of September 11, 2001, and some of the analysis will seem dated. Policy lessons from Japan's experience may still be pertinent.

In the late 1990s, some observers began to make comparisons between the rapid rise in stock prices then taking place in the United States and the escalation in asset values in Japan in the late 1980s. Did Japan's experience, which was followed by more than a decade of stagnation, contain any cautionary lessons for the United States? ...

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