Nikkei 225 · September 13, 1993
The rally the stimulus bought
+47.79%
trough back to the old high
265 trading days · 1992-08-18 → 1993-09-13
this undid the slide that began 1992-03-02
What happened that day?
- From the low on 18 August 1992 to the high on 13 September 1993, the Nikkei rose 47.79% over 265 trading days
- In August 1992 the government announced the largest stimulus package on record, built around public works
- The Bank of Japan kept cutting too, in a series of steps that had begun in 1991
- In this period Japan chose to cover the problem with money rather than clean it up
- In the short run it worked. The index rose nearly fifty percent in a year
- But the bad loans had not shrunk. When the package ran out, prices fell again
- This pattern repeated for the next ten years
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.