Quarterly Review
How Lower Japanese Asset Prices Affect Pacific Financial Markets
Spring 1994Volume 19, Number 1

Authors: Robert N. McCauley and Stephen Yeaple

The collapse of Japanese asset prices in the 1990s sharply reduced the wealth of Japanese banks and life insurers and slowed their international activity. This article traces the channels through which wealth changes altered these intermediaries' growth, pricing, and portfolio strategies. The authors also consider several factors that have eased the adaptation of foreign market participants to the revised strategies.

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