Keio University Shonan Fujisawa Campus
Course Summary (Syllabus)
1. Objectives/Teaching method
The course will first undertake an overview of Japan’s post-war economic history and policy based on the macroeconomic framework: It will cover issues such as how Japan had achieved rapid economic growth in a relatively short time span in spite of the post-war economic and social devastation, and how Japan had promoted globalization with the rest of the world. Also, the course will talk about the so-called the East-Asian model, a Japan-type development model that had been adopted by many East Asian countries.
The course will also spend two sessions regarding Japan’s position in the global international financial center, one of the hottest issue in the East Asian region and the world. Comparision will be made with the US and the UK. Some other countries/regions’ initiatives in East Asia will also be mentioned.
Another objective of this course is to help students gain a better understanding of the nature of the East Asian Crisis and how the intiatitives toward forming regional economic integration have emerged after the crisis. The recent movements toward economic integration in East Asia will be covered. Particularly, the regional swap arrangements and bond market development initiatives will be discussed in detail. Also, the East Asian visions toward common exchange rate arrangements will be pointed out.
2. Materials/Reading List
#2 Session 1: Overview of Japanese Post-War Economic Reconstruction Period
The lecture will breifly the post-economic reconstruction era (from the occupation by US-led SCAP in 1945 until Nixson Shock of 1971) and economic policy responses. It will also look at the balance of payments, capital account versus current account liberalization issues, fixed versus flexible exchange rate policy, and potential versus actual GDP growth
#4 Session 2: Globalization of Japan and Growing Linkages with East Asia
The lecture will look at the process of Japan’s trade liberalization from the 1960s, capital account liberalization in the 1970s-1980s, and financial sector liberalization in the 1980s. It will also focus on a shift in production location by Japanese manufacturing sector to US and East Asia and how the linkages with East Asia has been developed. Recent moves toward forming the Free Trade Arragements (FTA) and/or Economic Partnership Arragements (EPA) are also discussed.
#5 Session 3: Japan-China Growing Linkages: Challanges for Japan, Asia, and EU
#6 Session 4: Promoting the International Financial Center in Japan and Asia
The lecture will look at Japan’s capital and financial markets as well as the government initiatives to develop the international financial center in Japan. The comparision with US, UK and a few East Asian countries/regions will be made. What are discussed in East Asia regarding on the International Financial Centers currently will also be explained.
#7 Session 5: Features of Capital and Financial Markets: Comparison between Japan and China
#8 Students' Presentation
#9 Session 6: Reviewing the East Asian Crisis of 1997-98 and Its Differences from the Conventional Crisis
This section will review the process and causes of the East Asian Crisis of 1997-98 and compare with the conventional crisis that usually happen in low-income developing countries.
#10 Session 7: Policy Responses to the East Asian Crisis: Regional Swap Arragement
This section will look at the Asian Monetary Fund (AMF) proposal initiated by Japan in 1997 amid the crisis in Thailand, and the following New Miyazawa Initiative. It will also highlight the Swap Arrangment that had been realized since 2000 among the ASEAN plus Three (Japan, China, Korea).
#11 Session 8: Policy Responses to the East Asian Crisis: Regional Initiatives to Develop the Bond Market in East Asia
This section will focus on the Asian Bond Market Initiative (ABMI) and the Asian Bond Fund (ABF) and background issues.
#12 Session 9: Policy Response to the East Asian Crisis: Exchane Rate Policy Coordination
This session will discuss about the impossibility trinity, appropriate exchange rate policy, and regional exchange rate policy.
#13 Final Examination
4. Assignments/Examination/Grad Eval.
I will evaluate students based on (1) final examination (50%), (2)presentation (30%) and (3) active participation in discussions and attendance (20%).
5. Special Note
Students are expected to have some basic knowledge of macroeconomics.
For those who are not sure about the background of economics, please contact me in advance.
6. Prerequisit / Related courses
7. Conditions to take this course
Understanding of Basic Macroeconomics is desisable for this course. If students wish to take this course without any knowledge of Introductory Macroeconomics, self-reading of any standard textbook prior to the course registration is recommended.
8. Relation with past courses
9. Course URL