Disinflation and expanding financial-market connections
1983~1991.11
A period in which easing inflation pressures coexisted with exchange-rate adjustment, international financial integration, and regional asset bubbles and crises.
Grouped from 1983, the first full year of disinflation after 1982, through November (11) of 1991, the month before the Soviet Union dissolved. Japan’s bubble collapse and a US recession were already unfolding within this period, so it is not interpreted as a stable global boom.
Conditions at the time
A period in which easing inflation pressures coexisted with exchange-rate adjustment, international financial integration, and regional asset bubbles and crises.
How events unfolded
Financial-market connections expanded as major economies’ inflation environments changed. The Plaza Accord, Black Monday, and Japan’s asset-price reversal offer clues for comparing exchange rates, liquidity, and financial vulnerabilities.
Alternative interpretations and limitations
Do not apply the US “Great Moderation” label unchanged to Japan or emerging markets. Financial opening is not interpreted as a necessary and sufficient condition for crisis.
How to read editorial eras
Costs and policy capacity differed for households, companies, financial institutions, and governments. Check the national, industrial, and financial context of linked events rather than assuming everyone in the era shared the same experience.
Check linked events and policy announcements for information available at the time. Era names and representative-event selections are retrospective editorial choices; participants are not assumed to have known subsequent outcomes.
Interpretation using later sources
Later research examined reduced inflation and output volatility through structural change, improved policy and the size of shocks. Financial disruptions such as Black Monday still occurred, so macroeconomic stability did not eliminate financial risk. This era grouping cannot determine which explanation contributed most.
Evidence coverage through 1991-12-31 · Sources checked 2026-10-14
Historical events do not guarantee future recurrence or investment performance.