The rise and relative decline of the Japanese economy has been an important feature of the world economy over the last decade. In this innovative book, distinguished experts re-evaluate commonly held perceptions in the West and in Japan about the strength of the economy. They shed new light on Japan's current economic situation and prescribe policies to restructure the domestic economy in order to achieve growth objectives.
Japanese Economic Policy Reconsidered provides a critical evaluation of the key issues facing the Japanese economy, and the political and economic environments that continue to hold back Japan's future growth. The contributors advocate far-reaching structural reform in order to allow market forces to dictate industry policy. They then turn to the changing role of foreign trade and evaluate the Clinton Administration's attempt to define a new approach to US-Japan trade relations. Special attention is given to an empirical analysis of the problem of overseas production. They also examine the peculiar characteristics of Japanese foreign direct investment inflows, and advocate the removal of disincentives to foreign investment, in order to encourage trade and economic growth. The authors then discuss the role of the financial sector, particularly in relation to Germany and the United States, and discover parallels in monetary policy in all three countries. They recommend regulatory reform of the financial sector in Japan to adapt to the future financial environment.
This volume will be accessible to both scholars and practitioners looking for a deeper insight into modern Japan. It will also be of great use to students of macroeconomics, Asian studies, business economics and international economics.
Edited by Craig Freedman, Director, Centre for Japanese Economic Studies, Macquarie University, Australia
Contents: 1. The End of Economic Miracles (C. Freedman) Part I: Main Issues facing Japan's Economy 2. The Japanese Economy at Historical Crossroads 3. Structural Reforms Proposed in the Japanese Government's Mid-term Economic Plan 4. Theoretical Approaches to the Japan-American Security Alliance Part II: Foreign Trade and Investment 5. Japan and the 1994 Economic Report of the President 6. Foreign Direct Investment in Japan 7. Japanese Foreign Direct Investment Part III: The Financial Sector 8. Monetary Policy in Japan, Germany and the United States 9. Prudential Policy in Japan 10. Asset Prices and Consumption Index