The demand and supply balance is adjusted through price fluctuations under a market economy. However, price changes often go too far, occasionally leading to creation of a bubble boom and its subsequent collapse. When Japan's bubble boom went bust in the early 1990s, Japanese companies were burdened with three excesses — excess workforce, excess debt and excess production capacity — and spent the following two "lost" decades" adjusting the redundancies.
Further integration of economies around the globe through deregulation, plus accelerated speed in the turnover of money owning to advances in information technologies, created the bubble in the real economy as well as in financial products. Central banks of major countries were unable to fully grasp this new situation of excess liquidity. The recent low growth in both advanced and developed countries is proof that the global bubble is in the process of bursting. Just like in Japan in the 1990s, economies around the world are confronted with the three excesses. Here, I would like to look into more facts and background.
One thing we need to note is that whereas the excesses in Japan's bubble aftermath were mainly problems of individual companies, today the problem is weighing on the national economies.