Japan has been in a slump for the past decade. After GDP had been growing by on average 4 Percent during the 1980's, the growth rate Dropped to 1 percent in the 1990's. Asset prices Also fluctuated significantly: capital gains on Stocks and real estate in the 1980's, followed by Capital losses in the 1990's, were both on the Order of a few years' worth of GDP, even after Taking inflation into account. Together with production and asset prices, The fraction of nonperforming loans fluctuated Substantially. These are by no means all bank Loans. For the nonfinancial corporate sector in Joan, the ratio of financial assets to total Assets is about 40 percent, much higher than In the United States.
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