Japan’s bubble didn’t end by accident — it ended because of a policy decision.

In Episode 5 of Japan’s Bubble Economy, “The Policy Mistake,” we examine how the Bank of Japan tried to cool an overheated economy in the late 1980s — and instead helped trigger one of the most damaging economic collapses in modern history.

We break down how raising interest rates during a speculative environment caused the bubble to crack, how bad loans infected the financial system, and why denial and mismanagement turned the crash into Japan’s infamous Lost Decade.

If you want to understand how central banks can unintentionally destroy an economy — this episode is essential.