Economic reform, on an ongoing basis, is vital if economies are to achieve, and maintain, rapid and sustained economic growth. Yet governments face challenges when introducing economic reforms. Policymakers must judge what reforms are needed; when to introduce them; and how rapidly to pursue their...

In reviewing what happened in the 1980s in Japan and how the bursting of the bubble created problems in the early 1990s, the following conclusions are obtained. (1) In order to limit damage to the economy from a bubble and its bursting, it is important to build a resilient financial system...