Princes of the Yen: Japan's Central Bankers and the Transformation of the Economy

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M.E. Sharpe, 2003 - Business & Economics - 362 pages
This eye-opening book offers a disturbing new look at Japan's post-war economy and the key factors that shaped it. It gives special emphasis to the 1980s and 1990s when Japan's economy experienced vast swings in activity. According to the author, the most recent upheaval in the Japanese economy is the result of the policies of a central bank less concerned with stimulating the economy than with its own turf battles and its ideological agenda to change Japan's economic structure. The book combines new historical research with an in-depth behind-the-scenes account of the bureaucratic competition between Japan's most important institutions: the Ministry of Finance and the Bank of Japan. Drawing on new economic data and first-hand eyewitness accounts, it reveals little known monetary policy tools at the core of Japan's business cycle, identifies the key figures behind Japan's economy, and discusses their agenda. The book also highlights the implications for the rest of the world, and raises important questions about the concentration of power within central banks.
 

Contents

Japanese Lesson
xix
The Total War Economy
7
Winning the Peace An Economy at War
21
The Alchemy of Banking
36
Credit The Economic High Command
46
The First Bid for Central Bank Independence
55
Japans First Bubble Economy
71
Mysterious Money The Ebb and Flow of the Yen
80
The Goal of Monetary Policy
155
Back to the Future The Return of USStyle Capitalism
177
Reflation Another Miracle in the Making
197
The Asian Crisis and the Central Bankers
206
More Power to the Princes
220
The Revival of the Reichsbank
230
Japanese Fiscal and Monetary Policies in the 1990s
247
Notes
279

The Great Yen Illusion Credit Bubble and Bust
87
How to Prolong a Recession
101
The Battle of the Yen
112
At the Trigger of the Gun
124
The Princes of the Yen
138

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