In the latter half of the 1980s, not only Japan but also many countries including the United States, the United Kingdom, Nordic countries, and Australia experienced big changes in asset prices. While there is no doubt that easy monetary conditions were a common background factor behind asset price inflation, there appear to be significant differences in terms of scale and timing in each country. This paper analyzes the process of, and background to, asset price inflation in the 1980s and to try to deduce implications for monetary and financial policy, especially by comparing the cases for those countries.
Keywords: Asset Price Inflation; Tax Wedge.
Views expressed in the paper are those of the authors and do not necessarily reflect those of the Bank of Japan or Institute for Monetary and Economic Studies.