TY - JOUR
T1 - Before the 'locomotive' runs
T2 - The impact of the 1973-1974 oil shock on Japan and the international financial system
AU - Yago, Kazuhiko
N1 - Funding Information:
K. Yago, Professor of Economic History, School of Commerce, Waseda University, Chome- Totsukamachi, Shinjuku City, Tokyo -, Japan; email: yago@waseda.jp. This research was supported by JSPS KAKENHI grant no. H and a Mitsubishi Foundation grant (-).
Publisher Copyright:
Copyright © The Author(s), 2020. Published by Cambridge University Press on behalf of European Association for Banking and Financial History.
PY - 2020/12
Y1 - 2020/12
N2 - This article offers a Japanese perspective on the debate about the international financial system immediately after the first oil shock of 1973-4. Using archival records from the OECD and Bank of Japan, I analyze the three key policy issues discussed at the meetings of Working Party 3 (WP3) of the OECD: Petrodollar recycling, balance-of-payments adjustments, and the management of global growth. Documents show that the Japanese approach to capital controls, exchange rate management, state-led growth orientation and international banking strategies was rather strengthened by the impact of the oil shock. By 1975 the OECD viewed Japan, together with Germany and the United States, as one of the 'locomotives' that would trigger a revival of economic growth in the industrialized West.
AB - This article offers a Japanese perspective on the debate about the international financial system immediately after the first oil shock of 1973-4. Using archival records from the OECD and Bank of Japan, I analyze the three key policy issues discussed at the meetings of Working Party 3 (WP3) of the OECD: Petrodollar recycling, balance-of-payments adjustments, and the management of global growth. Documents show that the Japanese approach to capital controls, exchange rate management, state-led growth orientation and international banking strategies was rather strengthened by the impact of the oil shock. By 1975 the OECD viewed Japan, together with Germany and the United States, as one of the 'locomotives' that would trigger a revival of economic growth in the industrialized West.
KW - Japan
KW - OECD
KW - balance-of-payment adjustment
KW - petrodollars
KW - recycling
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U2 - 10.1017/S0968565020000177
DO - 10.1017/S0968565020000177
M3 - Article
AN - SCOPUS:85095770886
SN - 0968-5650
VL - 27
SP - 418
EP - 435
JO - Financial History Review
JF - Financial History Review
IS - 3
ER -
