This paper suggests that the weaknesses of corporate governance are enough to explain the Japanese banking crisis in the 1990s. Bank size and lack of operating and management efficiency contributes to low return, thereby lead to the failure of the banks. Emergence and burst of the bubble in the...

This article provides a model framework to characterize the process of stochastic learning during the period of divergence from a de jure currency regime. The model outcome shows that divergence from a de jure regime is a process of slow learning in small steps, which indicates that the learning...