13. Dr. Tadao Umesao’s View of the World Western Europe Japan Dry Area Russia China India Mediterranean & Islamic States Eurasian Continent

19. Japanese Real GNP 1885 - 2000

26. Minsei Seiyukai Main supporters Intellectuals, urban workers Big businesses, rural landlords Economic policy Small government, free market principle, eliminate inefficient units through macroeconomic austerity Big government, fiscal activism, public investment for industry and rural development Foreign policy Cooperate with US, oppose military invasion of China (protect Japanese interests through diplomacy) Supporting military expansion, cooperate with military, if necessary, to undermine Minsei Party Finance minister & economic policy in the 1930s <Junnosuke Inoue, until Dec. 1931> Intentionally generate deflation Return to prewar gold parity <Korekiyo Takahashi, Dec. 1931-Feb. 1936> End gold parity and depreciate yen Fiscal expansion (later, tight budget) Easy money

65. Firm's Bankruptcies and Total Debts of Bankrupt Firms

71. Caballero, Hoshi and Kashyap (2006)

73. Hayashi and Prescott (2002)

74. Hayashi and Prescott (2002)

75. Hayashi and Prescott (2002)

78. Hayashi and Prescott (2002): Model Fit

80. Hayashi and Prescott (2002)

81. Hayashi and Prescott (2002)

82. Hayashi and Prescott (2002)

89. Firm's Bankruptcies and Total Debts of Bankrupt Firms

95. Caballero, Hoshi and Kashyap (2006)

97. Hayashi and Prescott (2002)

98. Hayashi and Prescott (2002)

99. Hayashi and Prescott (2002)

102. Hayashi and Prescott (2002): Model Fit

104. Hayashi and Prescott (2002)

105. Hayashi and Prescott (2002)

106. Hayashi and Prescott (2002)