Princes of the Yen

Werner’s account of the Bank of Japan’s credit-allocation (‘window guidance’) regime, the 1980s bubble it inflated, and the lost decade that followed.

Why it’s on the list: Named in the “explains an entire industry” thread. A contested but unusually mechanical account of how credit creation, rather than interest rates, drives an economy.

Where I saw it: In Kyle’s “Books To Read” Apple Note, recovered from the reply thread to @WillManidis asking “what is the single best book you can read that will explain an entire industry?” (June 2, 2025). The full recovered list lives on what is the single best book… (tweet).

Connections

• what is the single best book… (tweet) — the thread this came out of; the full recovered list lives there.
• Markets — the bubble and its unwinding are the case study.