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Copyright © Cambridge Political Economy Society

research-article

Japan's crisis: evolution and implications

D. Hugh Whittaker and Yoshitaka Kurosawa

University of Cambridge
Nihon University

Abstract

‘Model causes crisis, crisis ends model’ arguments are misleading, both for Japan and East Asia. The sources of Japan's financial crisis are traced to the (partial) liberalisation process and policy mistakes of the 1980s, although systemic character istics may have impeded the clean-up of the resulting asset bubble. The ‘Japanese model’ is undergoing rapid change at the macro and micro levels, with significant implications for East Asia.

Manuscript received July 23, 1998;
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