Japan's "lost decade"

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The "lost decade" refers to a period in the 1990s during which Japan suffered from the collapse of a housing bubble. The bubble came at the tail end of a period of huge economic growth, when Japan had been flooded with cheap and easy credit and real estate prices soared. But the bubble burst in the mid-1990s, and real estate lost almost two-third of its value. Although Japanese banks were in danger of going under, the central bank was slow to intervene. It finally cut interest rates in 1995, but the damage had already been done. The Japanese economy still has not fully recovered from that ten-year period of stagnation. [1] [2]