It is admittedly simplistic, but I believe this is a good starting point for discussion. Deregulation-induced “financial innovations” and financial anomalies A number of “financial innovations” introduced as a result of deregulation appear to have played a role in the late 1980s bubble in Japan.
Under the designation of Financial Liberalization, deregulation sparked the arrival of new products such as CPs and large time deposits with unregulated rates, which nourished the atmosphere of profit-seeking through these “financial technology” products. 2 Financial Liberalization was a gradual process that started in the late 1970s and spanned twenty years.