chronology

Lorne Johnson and Ayumi Orito are the main contributors of the material on this page.

Mar 30, 1997: Nikkei average 18,003.40 (-186.32), The yen 123.97 (-0.31)

Apr 1, 1997: The consumption tax rises to 5% from 3%.

Apr 2, 1997: BOJ’s quarterly ‘tankan’ survey turns better for the first time in more than five years. (predicting expansion in economy)

Apr 4, 1997: The government introduces a 10% reduction target in public works projects for FY98

Apr 6, 1997: APEC statement "agrees that misalignments in the currency markets which existed in spring 1995 have been corrected

Apr 11, 1997: Sakakibara, Japan’s "Mr. Yen" (official of MOF) hints that Tokyo’s low interest rates cannot last forever (Business week)

Apr, 1997 : Tax hikes and tighter government spending are implemented by Prime Minister Hashimoto to reign in growing government deficit. (Business Week)

Apr 19, 1997: U.S. expresses concern over growth in Japan’s car trade surplus.

Apr 25, 1997: MOF orders Nissan Mutual Life Insurance Co. to shut down operations. (first insurance bankruptcy in five decades)

May 6,1997: Nikkei average surges (20,180.92 +667.17 )

May 8,1997: A health insurance bill that would at least double medical bills starting Sept.1 passes the Lower House – potentially hurting domestic consumption

May 14,1997: Nomura three executives are arrested in ‘sokaiya’ scandal in which some stockholders were pressured out of stockholder meetings

May 15,1997: The government finalizes plans for "sweeping" economic reform

May 16,1997: The Diet enacts a law that ends the monopoly of banks in the foreign exchange business.

May 20,1997: The yen continues to rise (112.42 +3.87) hit 111.98

May 30,1997: Ex-Nomura head is arrested in connection with ‘sokaiya’ scandal

Jun 1997: Industrial production falls by 3.1 %, possibly portending a return to recession for Japan. (Business Week)

Jun 3,1997: The government Budget-reduction goal unveils a public works outlay cut of at least 7%

Jun 6,1997: Four Dai-Ichi-Kangyo Bank executives are arrested over suspicion of providing 11.78 billion yen in loans to a ‘sokaiya’

Jun 11,1997: April Current account surplus up 93% from last year (1.09 trillion yen)

Jun 13,1997: Q1 GDP +1.6% q/q (from last quarter)

Jun 13,1997: The foundation for the government’s "Big Bang" reform of the financial system are unveiled with the release of three advisory panel reports.

Jun 22,1997: G7 statement " Japan needs to pursue robust domestic-demand-led growth and avoid a significant increase in its external surplus, and to advance deregulation"

Jun 25,1997: EU leaders voice concern over Japan trade surplus.

Jul 4, 1997: Nikkei average falls below the 20,000 level (19,968.00 -153.41)

Jul 9, 1997: May current account surplus jumps 154.9% from a year earlier. (906.8 billion yen)

Jul 17,1997: First-half trade surplus surges 28.4%

Jul 30,1997: Yamaichi Securities raided by prosecutors for illegally compensating racketeers. (Far Eastern Economic Review)

Aug 21,1997: Council headed by Prime Minister Hashimoto unveils a new plan to "reinvent government", with reforms of the Finance Ministry and Ministry of International Trade and Industry. (Far Eastern Economic Review)

Sep 11,1997: Japanese economy is reported to have contracted by 11.2% on an annual basis in the second quarter of 1997. The worst contraction since 1974. (Business Week)

Mid Sep,1997: Bank of Tokyo-Mitsubishi writes of 1.1 trillion yen in bad loans. (Far Eastern Economic Review)

Sep 24,1997: Chairman and President of Daiwa Securities steps down, former president of Yamaichi Securities is arrested. (Economist)

Oct 21,1997: The ruling LDP announces a set of economic stimulus measures

Nov 3,1997: Sanyo Securities Co. goes bankrupt (First Japanese brokerage to go under in post-war history)

Nov 13,1997: The Nikkei stock index reaches 15,427, its lowest level in over two years. (Economist)

Nov 17,1997: Hokkaido Takushoku, a large commercial bank, collapses. (Economist)

Nov 24,1997: Yamaichi Securities Co, a broker with $188 billion in investments under its care, goes bankrupt. This was the largest bankruptcy ever in Japan. (Business Week)

Nov 26,1997: Tokuyo City Bank collapses

Dec 17,1997: Prime Minister Hashimoto announces a $16 billion income tax cut, reversing a tax increase announced just the previous spring. (Economist)

Dec 29, 1997: Nikkei stock index at 14,775

Dec 31, 1997: Yen stands at 130.5 to the dollar

Dec 1997: The ruling Liberal Democratic Party approves a plan to raise $77 billion in government bond sales to help shore up a trembling financial system. (Business Week)

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This page was last revised on October 26, 1998.