How does the loosened monetary the policy led to the housing bubble

Abstract

in the late 1980s, to avoid the negative impact of the yen’s devaluation, the Bank of Japan tried to lower interest rates, reviving the economy. Unfortunately, the closeness of monetary policy has spurred more credit expansion by financial institutions, resulting in a rise in the money supply. Plus, the stock and property markets had uncontrollably expanded according to the wrong monetary policy. Looking at other countries, high housing prices become a common phenomenon in society; how to stabilize housing prices without making the economy depressed, Japan’s lessons are worth learning.