Plaza Accord
Bubble economy is the abnormal rise in share values and land prices after the Plaza Accord of September 22, 1985 produced a dramatic appreciation of the yen. This, in turn, triggered a rapid growth in capital investment and consumption, and asset prices skyrocketed as a result. When the government tightened monetary policy to counter these effects, share values and land prices fell. Consequently, financial institutions, especially securities companies, suffered losses. Since 1991, Japanese economy had been struggling to adjust to the government's liberalization measures, and recovery was still way off.