Topics on Modern Japanese Economy

Instructors

ITO, Takatoshi

Credits / Language / Semester

2Credits / English / Summer

Objectives/Overview

The objective of this course is to give students basic understanding of how the post-war Japanese economy, with has performed, with emphasis on the experiences in the 1990s and 2000s. The description and explanation is based on economic theory and empirical evidence. The role of economic policies—monetary policy, fiscal policy, financial supervision and regulation, industrial policy—will be carefully examined.
The following topics of the Japanese economy will be covered. General introduction to the topic will be followed by economic models to understand the issues, empirical evidences in the literature, and policy choices.
Topics:
1. Economic Growth: Great Stagnation and Recovery
2. Deflation and Monetary Policy
3. Financial Supervision: Nonperforming loans problem and banking crisis
4. Fiscal Policy: Fiscal sustainability
5. Industrial and Competition Policy
6. Demography, Saving, and Social Security
7. Labor Market
8. International Finance: the role of the yen

Keywords

Japanese economy, monetary policy, fiscal policy, economic growth, stagnation, deflation, banking crisis, financial markets, debt sustainability, industrical policy, demography, saving rate, social security, labor market, international finance

Schedule

1 4/09   1.1. Economic Growth: Long-term Growth
2 4/16   1.2. Economic Growth: and Fluctuation
3 4/23   1.3 Great Stagnation and Recovery
4 4/30 2.1. Monetary Policy
5 5/07 2.2. Deflation and Zero Interest Rate Policy
6 5/14 3.1. Banking Crisis in the 1990s
7 5/21 3.2. Financial Markets and Supervision
8 5/28 Mid-T Exam In Class, closed book,
9 6/04 4. Fiscal policy and debt Sustainability
10 6/11 5. Industrial Policy and Competition Policy
11 6/18 6. Demography and Saving, and Social Security
12 6/25 7. Labor Market
13 7/02 8. International Finance: the exchange rate and Trade
14 7/09 Final Exam In Class, closed book,

Teaching Methods

Readings will be assigned for each topic. Some readings will be posted on my homepage which will be password-protected. Students are expected to read those readings prior to the lecture and participate in the class discussion. Classes are conducted in an interactive manner.

Grading

Grading Policy:
Class participation (10%); Midterm Exam (40%); and Final Exam (50%)

Required Text

No textbook

Reference Books

Papers are assigned in the beginning of the semester

Notes on Taking the Course

Prerequisite: (Intermediate)
Macroeconomics (for public policy)
Microeconomics (for public policy)
Econometrics (for public Policy)

Related Resources

Courses