Strong money demand in financing war and peace : the cases of wartime contemporary Japan
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Bibliographic Information
Strong money demand in financing war and peace : the cases of wartime contemporary Japan
（Advances in Japanese business and economics, 28）
Springer, c2021
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Note
Includes bibliography (p. 191-198) and indexes
Description and Table of Contents
Description
This book theoretically and empirically investigates the emergence of strong money demand in wartime Japan (1937-1945), its disappearance after the end of the war (1945-1949), and the reemergence of strong money demand in contemporary Japan (from 1995 to the present) in terms of the effects on fiscal activities and the price level. An augmented fiscal/monetary theory of the price level is constructed from a close examination of the strong money demand present in these periods. Then, profoundly puzzling phenomena such as mild deflation despite monetary expansion, low long-term interest rates despite fiscal unsustainability, and weak aggregate demand despite near-zero rates of interest, all of which are actually being observed in contemporary Japan, can now be interpreted in line with the above augmented theory. In the present, strong money demand at near-zero rates endows the Japanese government with maximum fiscal flexibility. However, if it disappeared for some reason, prices would surge to the quantity theory of money level, and fiscal sustainability would have to be restored. In the future, alternative currency units issued by private banks might carry out a purge of such strong demand for the yen.
Table of Contents
PrefaceChapter 1: Long-Run Observations (the 1890s to the 2010s) and an Alternative Theory of the Price Level
Chapter 2: Demand for BOJ Notes from Black Markets under Price Controls (1937 to 1949)
Chapter 3: On Wartime Money Finance in the Japanese Occupied Territories (1942 to 1945)
Chapter 4: A Disequilibrium Analysis of a Lost Quarter Century (1995 to the 2010s)
Chapter 5: Long-Run Mild Deflation under Fiscal Unsustainability in Japan (the mid-1980s to the 2010s)
Chapter 6: Strong Money Demand and Emerging Cryptocurrencies
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