The Japanese Economy

The Japanese Economy (ISBN: 9780262534147) was written by Takatoshi Ito, published by The MIT Press in 1992. A second edition was published in 1996.

The Tokugawa Economy was characterized by...

• sakoku

• shinoo-kooshoo (lit.) (caste system)

  • peasants produce rice; 37% of harvest paid as taxes

    • 10%-30% of land is cultivated by tenants; tenants pay 20%-28% of harvest to daimyoo (lit.)

  • rice market emerged with 3/4 provided by daimyoo (lit.)

    • rice futures market in Osaka by 1730

• sankin-kootai (lit.) (court attendance)

• gold, silver, and copper coins with daily exchange rates
  • paper bills in use by private merchants were set to silver standard
• port of Dejima opened to Dutch and Chinese after currency began flowing out of country (to correct balance of payments)

Opening the country led to rapid economic changes.

• gold, silver coins were exchanged 1:1 by weight
  • domestic exchange rate for gold and silver was 1:5, while international rate was 1:15; government forced to adjust domestic rate after 7 years
• 500% inflation from 1859 to 1868

Meiji era characterized by...

• industrialization and military seizure
  • government seized foreign industry in reaction to tariffs, sanctions (esp. U.S.)
  • government built infrastructure and used industry subsidization policies
• exported silk, tea; gradually moved to manufacturing economy
• banking was centralized into a national bank
• shifted between gold and silver standards for expansive monetary policy
  • silver standard preferred by Pacific trade (esp. Mexico and Argentina)
  • gold standard preferred by European industrial powers
  • Finance Minister Korekiyo Takahashi left gold standard for expansive monetary policy in reaction to Great Depression
• Great Depression largely did not affect the economy (see above)
• Indonesian oil was a major goal for involvement in World War 2

CategoryRicottone CategoryRicottonePapers