The Japanese Bubble Economy and Financial Supervision and Regulation

The rapid growth of Chinese economy is accompanied by the expanding international reserves,the sustaining appreciation of RMB,and the rising asset prices.The symptoms are particularly similar to those of the Japanese bubble economy.Given that the recent financial tsunami triggered by the subprime crisis has had serious impacts on both real economy and virtual economy of China,it has been a widely concerned topic whether China is on the edge of a bubble-bursting event.With an analysis of Japan's bubble crisis,this paper argues that the Japanese financial supervision and regulation system had serious shortages in each stage of the economic bubble.The Japanese experences and lessons have important implications for the improvement of China's financial supervision and regulation system.