Japan Is Writing History As A Prime Boom And Bust Economic Case

Recently, we wrote a paper about the dynamics behind the boom and bust cycles, based on the view of the Austrian School (the Austrian Business Cycle Theory, or ABCT). The key takeaway was that central banks don’t help in smoothing the amplitude of the cycles, but rather are the cause of cycles.
Business cycles are a direct result of excessive credit flow into the market, facilitated by an intentionally low interest rate set by the government.