By 1983, house prices had fallen by around 25% and mortgage lending stopped growing. (2)  The Japanese asset bubble in the 1980s  The Japanese asset bubble of the 1980s is a trauma that has had an important influence on policy makers around the globe.
One is that the objectives of monetary policy should be modest. Fine-tuning economic growth has always been a too ambitious goal in a world with long and variable lags in monetary transmission. A clear focus on low and stable inflation can safeguard central banks against the temptation of activism. Given current uncertainties, monetary authorities must be particularly cautious in interpreting the output gap.