Neither the Keynesian nor Monetarist explanations can provide an account. Only the Austrian theory of the business cycle provides the explanation. Following the economic stimulus, asset prices in the real estate and stock markets inflated, creating one of the biggest financial bubbles in history. The government responded by tightening monetary policy, raising rates five times, to 6 percent in and
Economic history of Japan The economic history of Japan is one of the most studied economies for its spectacular growth in three different periods. First was the foundation of Edo in to whole inland economical developments, second was the Meiji Restoration in to be the first non-European power, third was after the defeat of World War II in when the island nation rose to become the world's second largest economy.
First contacts with Europe 16th century [ edit ] Main article: Nanban trade Japan was considered as a country rich in precious metals, mainly owing to Marco Polo 's accounts of gilded temples and palaces, but also due to the relative abundance of surface ores characteristic of a massive huge volcanic country, before large-scale deep-mining became possible in Industrial times.
It was densely populated and urbanized. Prominent European observers of the time seemed to agree that the Japanese "excel not only all the other Oriental peoples, they surpass the Europeans as well" Alessandro Valignano, "Historia del Principo y Progresso de la Compania de Jesus en las Indias Orientales.
Early European visitors were amazed by the quality of Japanese craftsmanship and metalsmithing. This stems from the fact that Japan itself is rather rich in natural resources found commonly in Europe, especially iron.
The cargo of the first Portuguese ships usually about 4 smaller-sized ships every year arriving in Japan almost entirely consisted of Chinese goods silk, porcelain.
The Portuguese who were called Nanban, lit. Southern Barbarians therefore found the opportunity to act as intermediaries in Asian trade. Edo period — [ edit ] Japanese export porcelain in the European shape of a barber's basin, with copulating cock, around The beginning of the Edo period coincides with the last decades of the Nanban trade periodduring which intense interaction with European powers, on the economic and religious plane, took place.
It is at the beginning of the Edo period that Japan built her first ocean-going Western-style warships, such as the San Juan Bautistaa ton galleon -type ship that transported a Japanese embassy headed by Hasekura Tsunenaga to the Americas, which then continued to Europe. Also during that period, the bakufu commissioned around Red Seal Shipsthree-masted and armed trade ships, for intra-Asian commerce.
Japanese adventurers, such as Yamada Nagamasawere active throughout Asia. In order to eradicate the influence of ChristianizationJapan entered in a period of isolation called sakokuduring which its economy enjoyed stability and mild progress. For the rest of the 17th century most Japanese porcelain production was for export, mostly in Kyushu.
The trade dwindled under renewed Chinese competition by the s, before resuming after the opening of Japan in the midth century. The construction trades flourished, along with banking facilities and merchant associations.
Increasingly, han authorities oversaw the rising agricultural production and the spread of rural handicrafts. By the mid-eighteenth century, Edo had a population of more than 1 million and Osaka and Kyoto each had more thaninhabitants. Many other castle towns grew as well.
Osaka and Kyoto became busy trading and handicraft production centers, while Edo was the center for the supply of food and essential urban consumer goods.
Rice was the base of the economy, as the daimyo collected the taxes from the peasants in the form of rice.
The rice was sold at the fudasashi market in Edo. To raise money, the daimyo used forward contracts to sell rice that was not even harvested yet. These contracts were similar to modern futures trading. During the period, Japan progressively studied Western sciences and techniques called rangakuliterally "Dutch studies" through the information and books received through the Dutch traders in Dejima.An accessible introduction to the Japanese economy, portions of which would be suitable for classroom use, is James Mak et al., Japan: Why It Works, Why It Doesn’t (University of Hawaii Press, ).
b. to jump-start the U.S. economy.
c. to place the blame for the war in Vietnam on the shoulders of North Vietnam. In the final analysis, the most significant result of the Korean War was undeclared war against Japanese naval forces in the Pacific.
By , Japanese officials became increasingly concerned with the country’s growing asset bubbles and the Bank of Japan decided to tighten its monetary policy.
Soon after, the Nikkei stock bubble popped and plunged by nearly 50% from approximately 39, to 20, . This is the 4th and final volume of Shigeru Mizuki's masterful + page history of Japan during Emperor Hirohito's reign (). As in previous volumes, Mr. Mizuki expertly discusses domestic politics, global events, crime, cultural moments, fashion, .
The Japanese economy was not stimulated out of its recession but instead experienced the two most negative years of GDP growth in the decade.
Krugman's policy recommendations are a result of his belief that Japan is in a liquidity trap.
Mar 01, · Until the end of the nineteenth century, Japan raised its per capita income, starting from a low level, by exporting primary commodities and importing manufactured goods. Around the turn of the century, Japan became a net importer of natural resources.