The Enlightenment of Japanese Bubble Economy Breaking on Chinese Economic Development

The bursting of the economic bubble in Japan was one of the most important economic events of the 20th century, and it was also a hot research field for economists in various countries. China and Japan, as the adjacent Asian economic powers, have many similarities in the path and mode of economic development. China's macro policy makers and economists have been repeatedly studying the process of the formation and disintegration of the Japanese bubble for several years till now. This historical experience serves as a "stones from other hills" and "lessons drawn from others' mistakes "for China's economic development. This paper first explores the causes of the bubble economy in Japan and then proposes suggestions for the healthy development of China's economy.