Crisis Resolution and Credit Allocation : The Case of Japan

@inproceedings{Peek2003CrisisRA,
  title={Crisis Resolution and Credit Allocation : The Case of Japan},
  author={J. B. Hans Peek and Eric S. Rosengren},
  year={2003}
}
A traditional “capital crunch,” like that experienced in the United States in the early 1990s, did not occur in Japan following the bursting of the stock price and real estate price bubbles. Poorly capitalized banks did not disproportionately cut back on loans, and overall lending did not decline dramatically. Nonetheless, we find evidence that the banking problems have contributed to the extended malaise of the Japanese economy during the subsequent decade. Just as the banks were slow to… CONTINUE READING