ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -From 1991 onwards, land prices started to decline and banks began to accumulate bad loan assets. The number of banking failures started to increase immediately after the financial bubble burst, reaching a peak almost one decade later.

Detailed explanation-2: -Japan’s “Lost Decade” was a period that lasted from about 1991 to 2001 that saw a significant slowdown in Japan’s previously bustling economy. The economic slowdown was caused, in part by the Bank of Japan (BOJ) hiking interest rates to cool down the real estate market.

Detailed explanation-3: -Understanding the Lost Decade The Lost Decade is a term initially coined to refer to the decade-long economic crisis in Japan during the 1990s. Japan’s economy rose meteorically in the decades following World War II, peaking in the 1980s with the largest per capita gross national product (GNP) in the world.

Detailed explanation-4: -During the Latin American debt crisis of the 1980s-a period often referred to as the “lost decade”-many Latin American countries became unable to service their foreign debt.

Detailed explanation-5: -The term “Lost Decade for Stocks” refers to the ten-year period from 12/31/1999 through 12/31/2009, when the S&P 500® generated an annualized total return of-0.9% over the period. This was only the second time that the market actually had a negative total return over a decade period.