TY  - JOUR
AU  - Kashyap,Anil K.
TI  - Sorting Out Japan's Financial Crisis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9384
PY  - 2002
Y2  - December 2002
UR  - http://www.nber.org/papers/w9384
L1  - http://www.nber.org/papers/w9384.pdf
N1  - Author contact info:
Anil Kashyap
Booth School of Business
University of Chicago
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-7260
Fax: 773/702-0458
E-Mail: anil.kashyap@chicagobooth.edu
AB  - This paper makes three contributions. First, I report information on the size of the Japanese financial crisis. Drawing principally on work by Fukao (2003) and Doi and Hoshi (2003) I estimate that the current taxpayer liability for losses incurred but yet to be recognized is likely to be at least 24% of GDP. Second, I explain why it has been so difficult to end the crisis. Third, I sketch the likely ingredients of what will be required to successfully resolve the crisis. The overarching principle is that Japan's banks, insurance companies, and government financial agencies all suffer different problems and require different solutions. But all three sectors are connected, and a failure to tackle concurrently the problems of all three promises to doom any reform plan.
ER  -