The American Great Depression and the Japanese Heisei-Era Depression Compared-From an Institutional Approach

Thís paper ínvestigates the ínstitutional causes of the Japanese Depressíon ín the 1990s ín cornparíson to those of the Arne:ríca Great Depressíon ín the 1930s. The Japanese Depressíon has two sírnílaríties to the Arnerícan Depressíon. (1) Both depressíons followed the bubble econorny. (2) The decades of the 1930s and 1990s were hístorícal transítion períods. The ínstitutional causes of the bubble econorny in Japan were followíng: (1) ínstability of the ínternational rnonetary systern. (2) transformation of the financíaL systern frorn “regula디on and relíef ’ to "deregulation and re.líef. " (3) transformation of the índustríal relations, (4) the Japanese dornestic ínstitutions such as the cross-shareholdíng systern, the tax systern, ‘'the land st없ldard， " 밍ld 야le underdeveloped welfare systern. These ínstitutional factors are currently obstructing econornic recoveη