2 loose monetary policy taken by the long-term response to the appreciation of the yen exacerbated foam generated and expansion. In the late 1980s, Japanese banks continue to lower interest rates, the officer set the benchmark interest rate from 5% in 1985 down to 2.5% in 1987, its lowest level in history, and continued until May 1989 at the same time, a large number of Japanese banks put on the currency, the Japanese government since 1986 for four consecutive years, the average annual growth rate of the money supply is maintained at about 10%. unexpected, Japan long-term, low inflation does not absorb the "moderate rate" The surge in money supply, leading to free a large number of surplus funds in commodity markets outside flooded into the stock market and real estate market, and prepare financial conditions for the generation of the bubble economy.