IDEAS home Printed from https://ideas.repec.org/p/wap/wpaper/1607.html
   My bibliography  Save this paper

Modernizing the financial system in Japan during the 19th century: National Banks in Japan in the Context of Free Banking

Author

Listed:
  • Masato Shizume

    (Faculty of Political Science and Economics, Waseda University)

  • Masayoshi Tsurumi

    (Institute of Comparative Economic Studies, Hosei University)

Abstract

In this paper, we explore the role of competing concepts of the banking system in the process of modernizing the financial system in Japan. The country has a long history of its own version of private note issuance dating back to the early 17th century. In the late 19th century, the Japanese government considered two options for modernizing its financial system, national/free banking as in the United States, and central banking as in Europe. It first decided to adopt the former because the Japanese economy was decentralized and more closely resembled the economy of the United States than that of the European countries. However, the Japanese government customized the banking system for the Japanese situation. After some trial and error, the government turned to the latter option and established the central bank in 1882.

Suggested Citation

  • Masato Shizume & Masayoshi Tsurumi, 2016. "Modernizing the financial system in Japan during the 19th century: National Banks in Japan in the Context of Free Banking," Working Papers 1607, Waseda University, Faculty of Political Science and Economics.
  • Handle: RePEc:wap:wpaper:1607
    as

    Download full text from publisher

    File URL: http://www.waseda.jp/fpse/winpec/assets/uploads/2016/09/No.E1607Shizume_Tsurumi.pdf
    File Function: First version,
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mari Ohnuki, 2007. "The Bank of Japan Network and Financial Market Integration: From the Establishment of the Bank of Japan to the Early 20th Century," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 25(1), pages 95-128, March.
    2. Ignacio Briones & Hugh Rockoff, 2005. "Do Economists Reach a Conclusion on Free-Banking Episodes?," Econ Journal Watch, Econ Journal Watch, vol. 2(2), pages 279-324, August.
    3. Miyajima, Shigeki & Weber, Warren-E, 2001. "A Comparison of National Banks in Japan and the United States between 1872 and 1885," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 19(1), pages 31-48, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Masato Shizume, 2017. "A History of the Bank of Japan, 1882-2016," Working Papers 1719, Waseda University, Faculty of Political Science and Economics.
    2. Masato Shizume, 2016. "Financial Crises and the Central Bank: Lessons from Japan during the 1920s," Working Papers 1611, Waseda University, Faculty of Political Science and Economics.
    3. SERGI BASCO & John P. Tang, 2017. "The Samurai Bond: Credit Supply And Economic Growth In Pre-War Japan," CEH Discussion Papers 05, Centre for Economic History, Research School of Economics, Australian National University.

    More about this item

    Keywords

    the modern banking system; free banking; national banks; the Bank of Japan;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wap:wpaper:1607. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hideki Konishi). General contact details of provider: http://edirc.repec.org/data/spwasjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.