Japan is a wonderful country that I'll be visiting in 1.5 weeks time, and also I'd be staying there for 3 months for my attachment program. Today, I will be looking back into the history of Japan's economy as well as a lookback into the Japanese Asset Price Bubble and the Lost Decade. Japan's economy is the 3rd largest in the world by nominal GDP (a monetary measure of the market value of all final goods and services produced in a period of time) and the 4th largest by purchasing power parity (an economic theory that states the exchange rate between two currencies is equal to the ratio of the currencies' respective purchasing power). Tokyo Stock Exchange is also the 4th largest stock exchanges in the world by market capitalization as well as the 2nd largest stock index in Asia. So what happened to Japan during 1986-1991?? Background The Japanese asset price ......