[Picture: Bank of Japan logo]
The Japanese asset price bubble was a time of skyrocketing land and stock prices in the Japanese economy, that peaked from 1986 to 1990 and hit bottom in its valuation of the Nikkei index in 2003. It is one of the more famous economic bubbles in economic history.
1989 marked one of the most rapid economic growth spurts in Japanese history. With a strong yen and a favorable exchange rate with the dollar, the Bank of Japan kept interest rates low, sparking an investment boom that drove Tokyo property values up sixty percent within the year. Shortly before New Year's Day, the Nikkei 225 reached its record high of 39,000. By 1991, it had fallen to 15,000, signifying the end of Japan's famed bubble economy.