Financing Japan’s World War II Occupation of Southeast Asia
AbstractThis paper analyzes how Japan financed its World War II occupation of Southeast Asia, the transfer of resources to Japan, and the monetary and inflation consequences of Japanese policies. In Malaya, Burma, Indonesia and the Philippines, the issue of military scrip to pay for resources and occupying armies greatly increased money supply. Despite high inflation ,hyperinflation hardly occurred because of a sustained transactions demand for money, because of Japan’s strong enforcement of monetary monopoly, and because of declining Japanese military capability to ship resources home. In Thailand and Indochina, occupation costs and bilateral clearing arrangements created near open-ended Japanese purchasing power and allowed the transfer to Japan of as much as a third of Indochina’s annual GDP. Although the Thai and Indochinese governments financed Japanese demands mainly by printing large quantities of money, inflation rose only in line with monetary expansion due to money’s continued use as a store of value in rice-surplus areas.
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Bibliographic InfoPaper provided by Economics Group, Nuffield College, University of Oxford in its series Oxford University Economic and Social History Series with number _109.
Length: 43 pages
Date of creation: 31 Oct 2012
Date of revision:
Contact details of provider:
Web page: http://www.nuff.ox.ac.uk/economics/
war; financial and macroeconomic crises; resource transfer; occupation costs; bilateral clearing arrangements; seigniorage; hyperinflation; Greater East Asian Co-Prosperity Sphere; Japan; Southeast Asia;
Other versions of this item:
- Gregg Huff, 2012. "Financing Japan's World War II Occupation of Southeast Asia," Economics Series Working Papers Number 109, University of Oxford, Department of Economics.
- Gregg Huff & Shinobu Majima, 2013. "Financing Japan’s World War II occupation of Southeast Asia," Working Paper 2013/02, Norges Bank.
- G01 - Financial Economics - - General - - - Financial Crises
- N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
- N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
- P44 - Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-HIS-2012-11-17 (Business, Economic & Financial History)
- NEP-SEA-2012-11-17 (South East Asia)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The three lives of Japanese military pesos
by JP Koning in Moneyness on 2013-11-30 14:40:00
- How Japan financed WWII
by Economic Logician in Economic Logic on 2012-12-07 15:53:00
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