Niall Ferguson's "The Ascent of Money: A Financial History of the World" explores critical moments in financial history, including Japan's experience with asset bubbles. The Japanese central bank made a deliberate attempt to deflate a rapidly inflating asset market, which inadvertently led to a dramatic 80 percent decline in the stock market. This pivotal decision marked the beginning of a prolonged period of economic stagnation that plagued Japan for a decade.

The book highlights how efforts to regulate and manage financial markets can have unintended consequences. In Japan, the central bank's actions, rather than stabilizing the economy, led to a severe downturn, illustrating the complexities and risks inherent in economic policy. Ferguson's analysis serves as a cautionary tale about the delicate balance needed when addressing asset bubbles and the potential fallout from aggressive monetary interventions.