Japan's prolonged economic and market stagnation after its 1989 asset bubble is commonly called the Lost Decades.
Japan's stock and property prices rose spectacularly during the 1980s. The Nikkei 225 reached its historical intraday peak of 38,957.44 on 29 December 1989. After the bubble burst, equity and land prices fell, banks accumulated bad loans, and weak demand slowed economic growth.
The phrase originally referred mainly to the 1990s, but it was later extended to include the 2000s and, in some usage, the 2010s. Deflation, aging demographics, financial-sector problems, and hesitant investment all contributed to the long period of underperformance.
The Lost Decades were not a single crash day. They describe a prolonged aftermath of an asset-price collapse. Japan's experience is often contrasted with the United States in 2008 because aggressive monetary policy, bank repair, and demographic conditions shaped the recoveries differently.