A Comparative Analysis of Japanese and German Economic by IFO Institute for Economic Research Sakura Institute

By IFO Institute for Economic Research Sakura Institute ofResearch Japan

The objective of this booklet is to judge adequately monetary improvement mechanism and to extract beneficial classes from a comparability of the industrial improvement of Japan and that of Germany. The e-book covers an intensive diversity of financial concerns: (1) macro-economic components: capital, exertions, know-how; (2) macro-economic rules: monetary, financial, business; (3) exterior shocks to either economies: oil crises, trade price fluctuations, environmental difficulties; (4) improvement procedures of significant industries: metal, chemical compounds, and vehicles. The analyses with this systematic and complete technique offer priceless insights for the final reader in addition to instructions for constructing nations and for japanese ecu nations in transition.

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During the period of approximately seventeen years, the economy went through four major expansionary phases: the Jimmu Boom, the Iwato Boom, the Olympic Boom and the Izanagi Boom. The high-growth era was characterised by Japan's efforts to catch up with the leading industrialised nations by improving living standards. This was reflected in the pursuit of quantitative expansion under policies that gave priority to growth. The "National Income Doubling Plan", formulated by the Ikeda cabinet in 1960, targeted full employment and the improvement of living standards, and can be described as the symbol of Japan's preoccupation in growth.

Nevertheless, the iron and steel industry lost almost half of its 1936 importance. fo report suggests this is due to the loss of customers in East Germany. The weight of the chemical industry also increased because of rapid technical change and product innovation. fo report suggests that recovery (Wiederaujbau) was largely complete by 1952 and that West Germany had an industrial structure appropriate for peace time and one which could provide sufficient exports to finance agrarian and raw materials imports.

The oil shocks provided the impetus for this change. The "Basic Economic and Social Plan," formulated by the Tanaka cabinet in 1973, focused on the creation of a welfare society and the improvement of national welfare, and on the development of an internationally harmonious socio-economic structure. This adjustment of Japan's growth path was also accompanied by change in its industrial structure. The focus shifted from heavy material industries to higher-value-added processing and assembly industries.

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