What was the name of Japan’s late-1980s asset-price collapse that began the country’s Lost Decades?

Japan’s late-1980s asset-price collapse is known as the Japanese asset price bubble.

During the second half of the 1980s, Japanese land and share prices rose dramatically. Easy credit, optimistic expectations, and strong economic performance helped fuel speculation. Tokyo commercial land became especially valuable, while the Nikkei 225 stock index reached its historic closing peak of 38,915.87 on December 29, 1989.

The Bank of Japan tightened monetary policy, and the bubble burst around 1990. Stock and land prices then fell for years. The resulting balance-sheet damage affected banks, companies, households, and government policy, contributing to prolonged weak growth and deflationary pressure.

The phrase “Lost Decades” usually refers to the long period of economic stagnation after the bubble, especially the 1990s and 2000s. It is not the name of the bubble itself. Japan’s experience is also frequently compared with the U.S. housing and credit crisis of 2007–2008, although the two episodes had different institutions and causes.