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Financing Japan's World War II Occupation of Southeast Asia

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  • Huff, Gregg
  • Majima, Shinobu

Abstract

This article analyzes how Japan financed its World War II occupation of Southeast Asia, the market-purchased transfer of resources to Japan, and the monetary and inflation consequences of Japanese policies. Occupation was financed principally by printing large quantities of money. While some Southeast Asian countries had high inflation, hyperinflation hardly occurred because of a sustained transactions demand for money and because of Japan's strong enforcement of monetary monopoly. Highly specialized Southeast Asian economies and loss of Japanese merchant shipping limited resource extraction.

Suggested Citation

  • Huff, Gregg & Majima, Shinobu, 2013. "Financing Japan's World War II Occupation of Southeast Asia," The Journal of Economic History, Cambridge University Press, vol. 73(4), pages 937-977, December.
    • Handle: RePEc:cup:jechis:v:73:y:2013:i:04:p:937-977_00
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    References listed on IDEAS

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    1. The three lives of Japanese military pesos
      by JP Koning in Moneyness on 2013-11-30 20:40:00

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    Cited by:

    1. Gregg Huff & Gillian Huff, 2015. "Urban growth and change in 1940s Southeast Asia," Economic History Review, Economic History Society, vol. 68(2), pages 522-547, May.
    2. Williamson, Jeffrey G. & Bassino, Jean-Pascal, 2015. "From Commodity Booms to Economic Miracles: Why Southeast Asian Industry Lagged Behind," CEPR Discussion Papers 10611, C.E.P.R. Discussion Papers.
    3. Masato Shizume, 2018. "Black Market Prices during World War II in Japan: An Estimate Using the Hedonic Approach," IMES Discussion Paper Series 18-E-17, Institute for Monetary and Economic Studies, Bank of Japan.
    4. Kim Oosterlinck & Jeremy Simon, 2015. "Financial Repression and Bond Market Efficiency: the Case of Italy during World War II," Working Papers CEB 15-001, ULB -- Universite Libre de Bruxelles.
    5. SAITO, Makoto & 齊藤, 誠, 2017. "On wartime money finance in the Japanese occupied territories during the Pacific War: The case of instant reserve banks as bad central banks," Discussion Papers 2017-03, Graduate School of Economics, Hitotsubashi University.
    6. Hattori, Takahiro & Oguro, Kazumasa, 2016. "An endeavor to estimate seigniorage before the end of and immediately after the Pacific War," Journal of the Japanese and International Economies, Elsevier, vol. 41(C), pages 1-16.

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    More about this item

    JEL classification:

    • 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 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation

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