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Did Korekiyo Takahashi Rescue Japan from the Great Depression?

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  • Cha, Myung Soo

Abstract

Korekiyo Takahashi is remembered as a wise finance minister saving Japan from the Great Depression, but the role of his policy remains to be rigorously measured, with proper control for other forces also driving the recovery. Vector autoregression analysis of previously unexploited monthly data indicates that while Takahashi’s fiscal expansion was critical in reversing the downswing, the subsequent upswing was sustained by industrial policy promoted by "new bureaucrats" as well as by world recovery. The rise of fascism also aided the rebound by creating a political setting, which generated downward wage shocks.

Suggested Citation

  • Cha, Myung Soo, 2000. "Did Korekiyo Takahashi Rescue Japan from the Great Depression?," Discussion Paper Series a395, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:a395
    Note: September 30, 2000, Bibliography: p. 26-30
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/13817/DP395.pdf
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    References listed on IDEAS

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