For the results of the April 1995 survey in Japan, please refer to “Results of the Survey of Derivatives Market Activity in Japan” in the May 1996 issue of the Bank of Japan Quarterly Bulletin.
The extreme version of this view rested on three basic tenets: (i) asset bubbles and other forms of potentially serious financial dislocation were difficult, if not impossible, to spot in real time; (ii) adjustment of the official interest rate was a very blunt and inefficient instrument with which to counter asset bubbles, and would likely inflict considerable collateral damage on the rest of the economy; and (iii) a more realistic strategy was to focus simply on cleaning up as quickly as possible once an asset bubble had burst.