The nickname commonly given to Japan’s post-bubble collapse beginning in 1989 is the Lost Decade.
Japan’s stock and property prices had risen dramatically during the late 1980s. The Nikkei 225 reached an all-time closing high of 38,915.87 on December 29, 1989. After the bubble burst, share prices and land values fell for years, leaving banks with bad loans and businesses with weak balance sheets.
The phrase “Lost Decade” originally described the prolonged stagnation of the 1990s. Many economists later used it more broadly for Japan’s economic difficulties extending into the 2000s. Deflation, cautious household spending, bank restructuring, and limited growth all contributed to the long recovery.
It is not a precise official name for one single crash day. The term describes an extended period of economic underperformance after the bubble’s collapse. Japan’s experience also became a frequently cited warning about asset bubbles, debt overhang, and the difficulty of restoring growth after financial crises.