2 Japan in the 1990s is a classic drawn-out Type II episode, but one in which foreign capital played only a minor role. BIS Review 115/1997  -2-  lend money for all sorts of promising projects and asset purchases. If the economy is growing strongly at the time, which it usually is, it looks as though everyone can make money.
5 The discussion of all these issues was centered on Fed Chair Alan Greenspan’s (1998) “New Economy” hypothesis that the United States had undergone fundamental changes for the better, leading to the otherwise puzzling outcomes. 6 See, for example, the estimates of the neutral rate reported on the New York Fed’s website at https://www.newyorkfed.org/research/policy/rstar.