ECO342H1 Chapter Notes - Chapter 8: Zaibatsu, Korean War, Keiretsu
Document Summary
Japan income 40%, germany 80% of us/uk in 1938. Converged to uk by 1972, 70% of us. German growth fairly steady 25 years after war but most rapid 1945 to 1960. Japanese growth relatively slow 1945 to 1958, accelerated 1958 to 1973. Allied (american) occupation was ultimate power (1956 to 1952) Governed through democratically elected upper and lower house. Communist china in 1949 and korean war (1950-52) critical to growth. Promotes economic independence of japan as bulwark against china. Consumer demand (not investment or exports) drove growth. Contrast to investment which was main driver in period of accelerated growth. Kosai: growth limited from 1945 to 1973 by international balance of payments. Results in expansion in iron and steel and chemical industries, contraction in textiles. Textiles was traditional source of exports, employed 1/3 of workforce before war. Limited foreign reserves to finance imports of resources. Pent-up demand from war, conversion of war bonds into currency fuels rampant inflation in 1945.
