Did Korekiyo Takahashi Rescue Japan from the Great Depression?
Author InfoCha, Myung Soo Abstract Korekiyo Takahashi is remembered as a wise finance minister saving Japan from the Great Depression, but the role of his policy remains to be rigorously measured, with proper control for other forces also driving the recovery. Vector autoregression analysis of previously unexploited monthly data indicates that while Takahashi’s fiscal expansion was critical in reversing the downswing, the subsequent upswing was sustained by industrial policy promoted by “new bureaucrats” as well as by world recovery. The rise of fascism also aided the rebound by creating a political setting, which generated downward wage shocks. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be l
