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Institutional Analysis of Japanese Economy Ⅱ
Institutional Analysis of Japanese Economy Ⅱ
After the collapse of the Tokugawa shogunate Japan experienced the Westernization in the 1870s and the industrial revolution from the 1880s. Along with the industrialization, the modern sectors in the Japanese society had constituted a classical market economy from the 1880s to the 1910s. The development in the period was supported by the well integrated international market, and was at least partly accommodated by the pool of slack labor in the traditional sector. Since the 1920s, especially in the 1930s, those favorable environments were impaired. Without a stable international financial market, macroeconomic stability needed to be sustained by individual states. Such an international condition rather exacerbated difficulty of managing the society as the labor market was becoming tighter as slack labor in rural regions was absorbed by the growing modern sector. At the end, Japan chose state-coordinated market economy after the experiment of command economy during the second world war. Then, from the 1980s, the economy has gradually back to the normal, the rule-based market economy. The aim of the course is to overview institutional changes in the Japanese economy from the 1970s to the 2000s and to understand how institutional and organizational factors work in a changing society.
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