The value of the yen is finally back to where it was before the Plaza Accord, attracting back factories and investors to Japan—a sign of a virtuous cycle.

 The bubble economy in Japan originated in the 1980s amid trade friction with the US and the Plaza Accord of 1985. The accord led to a sharp rise in the Japanese yen, making it difficult for Japanese companies to generate profits through exporting domestic products. Faced with this challenge, Japanese companies were compelled to establish factories abroad. The subsequent decrease in the population can be traced back to this shift of companies overseas, which, in turn, created a vicious cycle; that is, the decrease of domestic population led to even more companies moving abroad.

The value of the yen is finally back to where it was before the Plaza Accord, attracting back factories and investors to Japan—a sign of a virtuous cycle.