Inflation was a persistent trend in the Japanese economy in the 1960s and 1970s. Sometimes it went out of control and was dubbed hyperinflation; in other times prices showed relative stability. This section will sketch the process of inflationary development and survey its main sources and effects. Inflation is never a merely economic phenomenon; politics is deeply involved in its process. Some attention will therefore be paid to the political aspects of the problem in the latter part of our discussion. Since our principal purpose here is to provide a basis of comparison of inflationary experiences in postwar Japan and the Federal Republic of Germany, broad patterns rather than specific details will be emphasized. The relevant institutional arrangements will also be briefly described.
KeywordsExchange Rate Monetary Policy Trade Union Money Supply Public Debt
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- 1.See also Yutaka Kōsai and Yoshitaro Ogino, The Contemporary Japanese Economy (London: Macmillan, 1984) pp. 124–6.Google Scholar
- 5.For estimates of capital gains on unreproducible tangible assets, see Keizai Kikakuchō/Keizai Kenkyūjo, Kokumin Keizai Keisan Nempō, 1985 [Yearbook of National Accounts 1985], p. 304.Google Scholar
- 6.See Article 1 of the Bank of Japan Law in ‘Nihon Ginkō Hō’, in Roppō Zensho: Shōwa 61-nenban, Vol. 2 (Tokyo: Yūhikaku, 1986) p. 3194.Google Scholar
- 7.The behind-the-door negotiations over monetary policy are vividly depicted by a former vice-governor of the Bank, Kōji Nakagawa, in his autobiographical Taiken-teki Kinyū Seisaku Ron [A view of banking policy based on personal experience] (Tokyo: Nihon Keizai Shimbunsha, 1981).Google Scholar