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The Japanese Economy
The second edition of a comprehensive account of all the major aspects of the Japanese economy, substantially updated and expanded.
This textbook offers a comprehensive, rigorous but accessible account of all the major aspects of the Japanese economy, grounding its approach in mainstream economics. The second edition has been extensively revised and substantially updated, with new material that covers Japan's period of economic stagnation between 1991 and 2010. The first edition, published in 1992, focused on Japan as a success story of catch-up economic development; this edition reflects the lessons learned from Japan's Lost Two Decades.
After presenting the historical background, the book begins with macroeconomics, studying growth and business cycles. It then covers essential policy issues, with new material that takes into account the Japanese banking crisis of 1997-1998 and the global financial crisis of 2008-2009, discussing financial regulation, monetary policy, and fiscal policy. It goes on to examine saving, demography, and social security in light of Japan's ongoing demographic transition; industrial organization; labor markets; international trade and international finance; and the Japan-U.S. relationship. A new chapter offers a detailed analysis of the Lost Two Decades, synthesizing and applying concepts discussed in previous chapters and offering insights into such issues as successful catch-up growth, demographic shifts, and credit booms and busts.
This textbook offers a comprehensive, rigorous but accessible account of all the major aspects of the Japanese economy, grounding its approach in mainstream economics. The second edition has been extensively revised and substantially updated, with new material that covers Japan's period of economic stagnation between 1991 and 2010. The first edition, published in 1992, focused on Japan as a success story of catch-up economic development; this edition reflects the lessons learned from Japan's Lost Two Decades.
After presenting the historical background, the book begins with macroeconomics, studying growth and business cycles. It then covers essential policy issues, with new material that takes into account the Japanese banking crisis of 1997-1998 and the global financial crisis of 2008-2009, discussing financial regulation, monetary policy, and fiscal policy. It goes on to examine saving, demography, and social security in light of Japan's ongoing demographic transition; industrial organization; labor markets; international trade and international finance; and the Japan-U.S. relationship. A new chapter offers a detailed analysis of the Lost Two Decades, synthesizing and applying concepts discussed in previous chapters and offering insights into such issues as successful catch-up growth, demographic shifts, and credit booms and busts.
616 pages, Hardcover
First published December 18, 1991
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Displaying 1 - 3 of 3 reviews
February 10, 2025
This book is a rigorous, data-driven analysis of Japan's economic trajectory, mixing macroeconomic theory with historical institutional analysis. Ito meticulously examines Japan's growth miracle (1950s-1980s), stagnation (1990s-2000s), and the modern policy challenges it faces.
The greatest part is the formal modeling of the Japanese demographic crisis. With OLG models, for instance, the authors could show why Japan's aging population would translate into a shrinking labour force, declining savings rates, and unsustainably growing public debt. Their application of DSGE monetary policy evaluation models is equally superior, particularly the discussion around zero lower bound constraints under Abenomics.
The empirical parts are well-established, based on the use of VAR models with fiscal multipliers and deviations in the Taylor rule. However, some areas need more game-theoretic modeling, such as labor market rigidities. This is generally an excellent source regarding Japan's macroeconomic paradox. (¬‿¬)
The greatest part is the formal modeling of the Japanese demographic crisis. With OLG models, for instance, the authors could show why Japan's aging population would translate into a shrinking labour force, declining savings rates, and unsustainably growing public debt. Their application of DSGE monetary policy evaluation models is equally superior, particularly the discussion around zero lower bound constraints under Abenomics.
The empirical parts are well-established, based on the use of VAR models with fiscal multipliers and deviations in the Taylor rule. However, some areas need more game-theoretic modeling, such as labor market rigidities. This is generally an excellent source regarding Japan's macroeconomic paradox. (¬‿¬)
August 18, 2024
This is a great introductory book both on the Japanese economy and macroeconomics in general. I highly recommend this book to people who want to understand the rapid development and sharp slowdown of the Japanese economy since 1950.
October 19, 2025
A textbook-like read, great for anyone curious about the Japanese economy. Sadly, Prof. Takatoshi Ito passed away just two months after I finished the book. RIP
Displaying 1 - 3 of 3 reviews