Sorting Out Japan's Financial Crisis

Anil Kashyap

No 9384, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper makes three contributions. First, I report information on the size of the Japanese financial crisis. Drawing principally on work by Fukao (2003) and Doi and Hoshi (2003) I estimate that the current taxpayer liability for losses incurred but yet to be recognized is likely to be at least 24% of GDP. Second, I explain why it has been so difficult to end the crisis. Third, I sketch the likely ingredients of what will be required to successfully resolve the crisis. The overarching principle is that Japan's banks, insurance companies, and government financial agencies all suffer different problems and require different solutions. But all three sectors are connected, and a failure to tackle concurrently the problems of all three promises to doom any reform plan.

JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2002-12
New Economics Papers: this item is included in nep-fin, nep-ifn and nep-rmg
Note: CF EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Published as Kashyap, Anil K. "Sorting Out Japan's Financial Crisis," FRB Chicago - Economic Perspectives, 2004, v26(4,4th-Qtr), 42-55.

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