Life Insurance: The Other Dimension to Japan's Financial Crisis
The long period of deflation that followed the bursting of the financial bubble in 1990 has caught Japan's life insurance in a double bind: on the one hand asset values are falling, while on the other hand high returns to policy-holders are still being offered in an effort to stave off a collapse of new policy subscriptions. A vicious circle of insolvency then arises when liquidity constraints oblige these funds to liquidate depreciated assets. Bankruptcies multiply. These institutions are at the heart of Japan's economic model, but have now themselves become a source of uncertainty, leading to deflationary pressures. Reforms have been undertaken since 1997, but important changes remain to be made, if the sector is to be consolidated and the past mistakes of the banking crisis not to be repeated.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.