ABSTRACT
At present, the Japanese economy is facing a series of reforms designed to overcome the current financial crisis by moving the Japanese financial structure from a bank-based to a market-based system. In assessing the financial crisis and reforms, it is essential to focus on asset inflation since the rapid drop of over inflated asset values such as real-estate and equities led to the present financial turmoil. At the same time, it can be demonstrated how the relationship between the financial sector and employment policy was associated with the asset inflation of the 1980s.
