On the Financial Repression in Japan During the High Growth Period (1953-73)

Murat A. Yülek

Finance from University Library of Munich, Germany

Abstract: Japanese financial policies during the so called High Growth Period (HGP-roughly 1953-1973) stand at sharp contrast with the presumptions of the financial liberalization literature. Against the Japanese example, McKinnon (1991) and Horiuchi (1984) have argued, based on relatively high interest rates in Japan during this period compared to developed economies, that the Japanese financial market was not repressed. In this paper, Japanese financial policies during the HGP are examined to show the heavy and distortionary but purposeful government intervention in the financial markets. Moreover evidence is provided against those of McKinnon and Horiuchi to show that major interest rates have been repressed during the HGP. Finally, the reasons that forced the Japanese government to implement financial liberalization after 1973 are discussed. These reasons do not include considerations related to growth and the growth performance have declined after 1973.

Keywords: Japanese; financial; policies (search for similar items in EconPapers)
JEL-codes: G (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fmk
Date: 2005-11-24
Note: Type of Document - pdf; pages: 18
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0511/0511012.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpfi:0511012

Access Statistics for this paper

More papers in Finance from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().