- 城西現代政策研究 (ISSN:18819001)
- vol.7, no.2, pp.3-14, 2014-02
The Nikkei Stock Average peaked at 38,915.87yen on December 29, 1989, and steadily fell after the collapse of the Japanese asset price bubble, hitting a low of 7,607.88yen on April 28, 2003. Some argue that the injection of public funds into Resona Bank in these circumstances was a noteworthy and important economic policy measure that helped turn around the Japanese economy; others assert that it had the harmful effect of encouraging moral hazard among financial institution managers and shareholders. Even at present, there is no consensus. Over ten years have passed since the injection of public funds into Resona Bank in 2003. This paper surveys previous research, and through the use of additional material that has since become available, considers from a wide variety of angles the historical significance of the impact the rescue had on the Japanese economy.