Japanese economic history
In the history of Japanese economy is for 17 years from 1920 to 1937. Japanese economy will be hit by three big depressions, reactionary depression (1920 depression), ? Financial crisis, and ? Shows Depression, after the war [ ? ], and will experience long-term depression in this period. The one-eyed postwar reactionary depression which occurred for 1920 (Taoist 9) years Is the depression which made the cause the economical gap of during the war and the postwar period.
As for the Japanese economy of the ass, a protracted economic slump will continue starting with this depression. The global supply shortage of 1920 previous World War I (1914 o 18 years) made Japan’s export expand, and It led It to prosperity. Expansion of demand changed Japan from the agricultural country of prewar days to the Industrialized country. Moreover, the labor shortage by expanding demand moved the farmer to the city, and supported city development greatly.
However, when World War I held the end of the war and It entered In the ass, Western countries reorganized domestic production and It reduced the demand to Japan. In Dalton to the reduced demand from Western countries, an excess of imports by resumption of import decreased the Japanese specie, and caused the fall of a money order and outstations on commodities. In this way, Japanese economy will fall into a protracted economic slump. Moreover, this depression will deal a blow to many companies, and will drive them in to a breakdown.
Moreover, although a return of the gold standard by the lifting of the gold embargo was desired as a measure against reactionary depression, a ban was not removed on the bank or foreign trade business which were faced with the dormant capital at this time. (After World War l, the countries of many including the united States returned to the gold standard one after another, and formed the axis of new international finance. Then, the Great Kant Earthquake occurred for 1923 (Taoist 12) years, and an excess of imports became increasingly large so that this might be attacked.
The government proclaimed the Bank of Japan earthquake bill discount-lost “the government compensates a loss of the Bank of Japan for less than 100 million yen at the same time the Bank of Japan does rediscover influence of the note (earthquake bill) whose earthquake disaster victim is an obligator and it postpones collection” as a measure to the company which suffered the serious damage caused by an earthquake disaster. However, the earthquake bill recessing problem arose by this Imperial edict.
In the note processed as this earthquake note, many notes of the company and the manager who became bad loans under the influence of reactionary depression were Intermingled. It Is [ In / In order to prevent the breakdown of the company by this, or a bank / an every place considered as 2 million yen or more In the case of the bank which has a head office In a big city these standards It cannot fill, either a duty of a bank was Imposed so that capital Increase and a merger might be performed wealth five years and the standard might be reached ” It went Into effect and Inland banks were cut down.
However, by Improper language disturbance of Finance Minister Kate after the Tokyo Waterman bank is actually closed, the bank commission by the depositor banks were obliged to closure and also had the bank which results even in a breakdown. This depression that occurred for 1927 (Shows 2) years is the second financial crisis. It was continuously hit by two depressions after the war with reactionary depression and a financial crisis, and in order to reorganize the Japanese economy which the foreign outflow of the specie was aggravating, Minister-of-Finance
Junketed Onion of the Coach’s Humanistic civil administration intermarry big building pushed the lifting of the gold embargo. It is ordered in the basis of Junketed Onion who performs a tight financing policy, and 1929 in the lifting of the gold embargo (“Finance Ministry Ordinance of the purport that a ban is removed on gold export from January [ next year ] 1 1 and Japan also makes the gold standard return at last after the war.
However, the business of the United States which began to lead the world instead of Britain retreated, and when the New York Stock Exchange slumped n connection with it, the global Great Depression occurred after the war. In this way, Japan will be involved in the global Great Depression simultaneously with the lifting of the gold embargo. This is Shows Depression which occurred for the third 1930 (Shows 5) year. Moreover, in industry, the silk industry in which the demand from the United States occupied most suffered the damage caused by this Shows Depression most.
Then, social problems, such as unemployment, selling themselves, and an undernourished schoolchild, also occurred, and the Japanese held economical / social uneasiness and were troubled with poverty. Aiming at escape from this Great Depression, Minister-of-Finance Kookier Dashiki of the Toughs Incubi Friends of Constitutional Government Party Cabinet starts an expansionist fiscal policy. First, Dashiki re-forbade export of gold in 1931, after Britain stopped the gold standard.
The managed currency system and red-ink bond which were newly introduced instead of the gold standard and which are not bound by the quantity possessed of a specie enabled reservation of the source of revenue stabilized for performing an expansionist fiscal policy. Dashiki performs the “spending policy” which plans economic recovery by expanding annual expenditure based on these goods. The war expenditure expanded by the Manchuria Incident which broke out in Shows Depression in 1931 made the annual expenditure by the government increase.
This annual expenditure that increased, I. E. , an effective demand, increased the demand for fund of private enterprises, and it led Japanese economy to inflation. The demand for fund of private enterprises is connected to the employment to Jobless people, and Japanese economy began to incline to prosperity. However, superfluous circulation of the inconvertible paper money by the red-ink bond and managed currency system which continue increasing will depreciate the exchange rate of the yen, and we will be anxious about a vicious inflation.
To this, although Dashiki aimed at reduction of a red-ink bond and a war expenditure, he was assassinated. Although Minister-of-Finance riding ground ? 1 of the successor Koki Horror new Cabinet performed reduction of the public loan, expansion of the war expenditure was continued. Although the demand to heavy and chemical industries also increases with war expenditure expansion, since it did not catch up with it, the controlled economy (“direct intervention to a governmental economic process”) will start.
In this way, the Japanese economy in accomplished high including a spending policy, though the blow was received in three big depressions.