Abstract

Winner of the 64th Nikkei Prize for Excellent Books in Economic Science
Nikkei Prize for Excellent Books in Economic Science is co-hosted by Nikkei Inc. and the Japan Center for Economic Research and was established in 1958 with the aim of contributing to enhance academics and knowledge in the fields of economics, management, and accounting as well as promoting their spread and application to the general.

The author Mr. Sakuragawa is a theoretical economist and explains that the bubble is deeply connected to an imperfectability of the financial markets by examining the existing theory on the bubble and came up with his unique concept “low interest rate economics” that the bubble occurs when interest rate is below growth rate. He also analyzed the bubble phenomenon in Japan, US and other countries and regions in the world to clarify the connected transmigration of bubbles beyond borders and regions.

Applying “low interest rate economics” to Japan on this basis, he pointed out that in Japan the financial function has been deteriorated in parallel with the zero-interest rate policy and that the aggravation of “transfer of economy” by government bond bubble has resulted in the stagnant economy, and raises a bold question that an interest rate hike truly drives growth.

This great book extends from the theoretical, historical and demonstrative analysis to policy proposals, to cut boldly and deeply into the problems of bubble that leads to today’s long-term stagnancy.

Author’s Information

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