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