I.  Japan’s economy during the past 15 years  Progress in globalization In order to understand the medium- to long-term challenges that lie ahead for Japan’s economy, I will first compare how it is today to how it was back in 1995.
In the end, equity and debt holders were wiped out, while even large, uninsured depositors were spared from losses. In order to stabilise the overall banking sector, the Federal Reserve swiftly established the bank term funding programme (BTFP), which accepts devalued high-quality collateral at par without haircuts. [24] Effectively, it provides liquidity at rates lower than market funding.