Japan's 'Lost Decades': A Protracted L-shaped Stagnation

Japan's 'Lost Decades' starting in the 1990s serve as a prominent example of an L-shaped recovery, characterized by a steep decline followed by a long period of low growth and persistent stagnation, which can be seen as a severe form of C-shaped prolonged economic weakness [37]. This period followed an asset price bubble and subsequent interest rate hikes [37].

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