Questions on Macroeconomics: Japan and Korea
Answer three of the four questions. Each answer should be around 500 words.
1. Hart-Landsberg describes Japanese economic development after WWII as a process of “scrap and build.” Explain. What industries were promoted, scrapped? Why? What industries replaced those that were scrapped? What were the three main stages of this scrap and build process?
2. Koo argues that, after the bursting of the bubble economy, Japan suffered a balance-sheet recession. Explain what this means. What has been the role of fiscal and monetary policy in addressing the long stagnation and deflation in the Japanese economy?
3. Discuss the relationship between Japan’s and Korea’s development. Consider such things as planning institutions, aid and loans, technology transfers, industrial organization, competition for markets.
4. Until 1992, South Korea was an authoritarian military dictatorship –“a peacetime economy with a warlike mentality” according to Kohli. What did this mean in terms of work and social conditions?