Macroeconomics and the Japanese Economy
This book proposes a new approach to macroeconomics which draws upon the experience of the Japanese economy. the approach is similar to the Old Keynesian view: it rejects the Walrasian approach, and singles out real demand as the fundamental determinant of output in the economy as a whole.However, by maintaining that real demand constrains are important not only in the short-run, but in the long-run, it goes beyond what is normally understood as the Keynesian approach. This book is also very different from the New Keynesian Economics. In particular, it regards the rigidity ofnominal wages/prices as of secondary importance._ To show that a new approach is called for, Professor Yoshikawa provides both theoretical exercises and numerous empirical analyses of the Japanese economy. His arguments are extensivley illustrated by almost 200 figures and tables ofdata.
aggregate demand analysis argue assets assumed assumption average business cycle call rate capital stock changes Chapter coefficient consumption correlation cost countries current account decline demand constraints demand shocks depends determined discount rate domestic economic growth effect elasticity electrical machinery endogenous equation equilibrium exchange rate estimated example exogenous explain exports fact fluctuations growth of demand growth rate high growth household saving rate important income inflation input inventory investment inventory stock Japanese economy Japanese firm Keynesian Keynesian Economics labour force labour supply labour's share lags long-run macro ratios macroeconomic manufacturing industry marginal monetarism monetary policy money supply nominal interest rate obtain oil shock period pre-war production function profit rate rate of real real business cycle real demand real factors real GNP real interest rate real wages relative result role SCAP Section sector Shunto supply shocks Table technical progress tion unemployment rate United variables workers