Working papers:
The Japanese Big Bang as a Unilateral Action
Koichi Hamada
Downloads:
- Title:
- The Japanese Big Bang as a Unilateral Action
- Author(s):
- Hamada, Koichi
- Date:
- 1998
- Type:
- Working papers
- Department:
- Center on Japanese Economy and Business
- Permanent URL:
- http://hdl.handle.net/10022/AC:P:15093
- Series:
- Center on Japanese Economy and Business Working Papers
- Part Number:
- 144
- Publisher:
- Center on Japanese Economy and Business, Graduate School of Business, Columbia University
- Publisher Location:
- New York
- Abstract:
- Japan followed the British example of the "Big Bang" in April 1998. This move towards "Big Bang" is a unilateral action without requiring any conditions for the policy measures of other countries. This move has many economic grounds. The Japanese financial system has had incentive problems. Financial agents were looking at, or watching, the signals of policy makers and supervising administrative authorities rather than watching the signals of the markets. This created prolonged financial difficulties during the 1990s. The "Big Bang" is an attempt to liberalize the Japanese market towards the external world and, thereby, deregulate the internal financial market. Needless to say, political resistance against the process exists by various interest groups. If the "Big Bang" question overcomes the resistance, however, it may work as an effective means of modernizing and revitalizing the Japanese financial system by restoring proper incentive mechanisms.
- Subject(s):
- Finance
- Item views:
- 58