Cover image for Japan's financial crisis and its parallels to U.S. experience
Title:
Japan's financial crisis and its parallels to U.S. experience
Author:
Mikitani, Ryōichi, 1929-2013.
Publication Information:
Washington, DC : Institute for International Economics, 2000.
Physical Description:
xi, 228 pages : illustrations ; 23 cm.
Language:
English
ISBN:
9780881322897
Format :
Book

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Central Library HG1275 .J385 2000 Adult Non-Fiction Central Closed Stacks
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Summary

Summary

Japan is only one of many industrialized economies to suffer a financial crisis in the past 15 years, but it has suffered the most from its crisis--as measured in lost output and investment opportunities, and in the direct costs of clean-up. Comparing the response of Japanese policy in the 1990s to that of US monetary and financial policy to the American Savings and Loan Crisis of the late 1980s sheds light on the reasons for this outcome.

This volume was created by bringing together several leading academics from the United States and Japan--plus former senior policymakers from both countries--to discuss the challenges to Japanese financial and monetary policy in the 1990s. The papers address in turn both the monetary and financial aspects of the crisis, and the discussants bring together broad themes across the two countries' experiences. As the papers in this Special Report demonstrate, while the Japanese government's policy response to its banking crisis in the 1990s was slow in comparison to that of the US government a decade earlier, the underlying dynamics were similar. A combination of mismanaged partial deregulation and regulatory forebearance gave rise to the crisis and allowed it to deepen, and only the closure of some banks and injection of new capital into others began the resolution. The Bank of Japan's monetary policy from the late 1980s onward, however, was increasingly out of step with US or other developed country norms. In particular, the Bank of Japan's limited response to deflation after being granted independence in 1998 stands out as a dangerous and unusual stance.


Author Notes

Dr. Posen, the President of the Peterson Institute for International Economics, has specialized in macroeconomic and monetary policy, resolution of financial crises, central banking issues, and the economies of Western Europe, Japan, and the United States. Dr. Posen brings a distinctively global perspective to macroeconomic policy analysis and forecasting. He has written about the financial and economic challenges faced by the European Union following the adoption of the euro and the lasting impact of Japan's economic crisis of the 1990s, while providing counsel directly to the Japanese government in Tokyo. Leading up to the successful London G-20 summit of 2009 during the global financial crisis, he consulted for the UK Cabinet Office.


Table of Contents

Adam S. PosenRyoichi MikitaniBenjamin M. FriedmanYoshinori ShimizuRobert R. Glauber and Anil K. KashyapToshiki Jinushi and Yoshihiro Kuroki and Ryuzo MiyaoBen S. BernankeEisuke SakakibaraOlivier BlanchardAdam S. PosenJeffrey R. Shafer
Prefacep. vii
Acknowledgementsp. xi
1 Introduction: Financial Similarities and Monetary Differencesp. 1
2 The Nature of the Japanese Financial Crisisp. 27
3 Japan Now and the United States Then: Lessons from the Parallelsp. 37
4 Convoy Regulation, Bank Management, and the Financial Crisis in Japanp. 57
5 Discussions of the Financial Crisisp. 101
6 Monetary Policy in Japan Since the Late 1980s: Delayed Policy Actions and Some Explanationsp. 115
7 Japanese Monetary Policy: A Case of Self-Induced Paralysis?p. 149
8 US-Japanese Economic Policy Conflicts and Coordination during the 1990sp. 167
9 Discussions of the Monetary Responsep. 185
Bubbles, Liquidity Traps, and Monetary Policyp. 185
The Political Economy of Deflationary Monetary Policyp. 194
The International Aspects of Japanese Monetary Policyp. 209
Indexp. 215
About the Contributorsp. 225

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