Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74518
Authors: 
Schnabl, Gunther
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4249
Abstract: 
The paper compares the boom-and-bust cycles in Japan and Europe with respect to the reasons for excessive booms, the characteristics of the crises, and the (potential) effects of the crisis therapies. As in Japan the consequence of expansionary monetary and fiscal policies is the hysteresis of the low-interest rate and high government debt environment, the erosion of the allocation and signaling function of the interest rate, the gradual quasi-nationalization of financial institutions as well as gradual real income losses, the economic policy implication for Japan and Europe is the timely exit from the current crisis therapies.
Subjects: 
Japan
Europe
bubble economy
European crisis
low interest rate policy
government debt sustainability
balance sheet recession
JEL: 
E32
E42
E58
Document Type: 
Working Paper

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