＜概要/Course Content Summary＞
Throughout the course of The Financial System in Japan, you will learn about the evolution of Japan’s financial market and how the system has gone through the post World War II era. The instructor has many years of experience in finance since mid-1980's and will give you a lot of deep insights and analysis about certain important events which influenced the shape of the Japanese financial institutions today.
The critical moment came when gradual deregulation of the Japanese market was allowed and the market was liberalized to foreign financial institutions. Some important events will be highlighted and discussed deeply.
This course is intended to be interactive so that it is expected that students complete reading assignment and homework(if any)before attending this class on Zoom. The Part One will focus on the historical development of the Japanese financial system. After the Part One there will be a group work to be presented during the class. The topic of presentation will be given a few weeks prior to the presentation.
＜到達目標/Goals,Aims＞
The objective of this course is to understand the development process, the current overview and the future of Japanese financial system, focusing especially on the Japanese financial institutions, major players and the presence of foreign financial institutions.
＜授業計画/Schedule＞
（実施回/
Week）
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（内容/
Contents）
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（授業時間外の学習/
Assignments）
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（実施回/ Week）
Part One: Japan’s financial system; then and now
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（実施回/ Week）
Week 1
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（内容/ Contents）
Introduction
Introduction, course orientation and a birds-eye view of the financial system of contemporary Japan
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（授業時間外の学習/ Assignments）
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（実施回/ Week）
Week 2
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（内容/ Contents）
Contemporary finance at dawn
How was the modern financial system built?
-Legacy from the pre-Meiji era
-The Iwakura Mission and external factors
-Direct finance and banking intermediaries 3.
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（授業時間外の学習/ Assignments）
Hoshi & Kashyap Chapters 1 & 2
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（実施回/ Week）
Week 3
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（内容/ Contents）
Inter-war period
What were the causes of the Showa / Great Depression?
-The banking crisis in the 1920s
-Gold standard system and the Great Depression
-Fallacy of the “yen-bloc”
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（授業時間外の学習/ Assignments）
Hoshi & Kashyap Chapters 2 & 3
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（実施回/ Week）
Week 4
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（内容/ Contents）
“The 1937 system”, WWII and post-WWII reconstruction
How did the system change along with the wars?
-Controlled banking
-Zaibatsu dissolution
-Reconstruction finance and priority production system
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（授業時間外の学習/ Assignments）
Hoshi & Kashyap Chapter 3
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（実施回/ Week）
Week 5
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（内容/ Contents）
The main bank system and keiretsu
Was the system efficient at the time of rapid growth?
-“Japan Inc.” and the convoy system
-Regulations to depositors, borrowers and lenders
-Bailouts
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（授業時間外の学習/ Assignments）
Hoshi & Kashyap Chapters 4 & 5
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（実施回/ Week）
Week 6
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（内容/ Contents）
Deregulation and the bubble trouble
Was it truly a conspiracy of the American gaiatsu?
-Globalization and deregulation
-Asset finance and the bubble
-Bubble economy; here and there
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（授業時間外の学習/ Assignments）
Hoshi & Kashyap Chapter 7
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（実施回/ Week）
Week 7
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（内容/ Contents）
Jusen, “Japan premium” and crisis
Weren't the reforms drastic enough?
-Big Bang and limited market opening to foreigners
-Series of financial sector bankruptcies and non-performing loans
-Asian Financial Crisis
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（授業時間外の学習/ Assignments）
Hoshi & Kashyap Chapter 8
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（実施回/ Week）
Week 8
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（内容/ Contents）
Lost in excess money supply
Where is Japan’s financial industry heading to?
-Zero-or-negative interest rates
-Decreasing financial needs
-Decreasing workplace popularity
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（授業時間外の学習/ Assignments）
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（実施回/ Week）
Week 9
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（内容/ Contents）
Group presentation
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（授業時間外の学習/ Assignments）
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（実施回/ Week）
Part Two: Japanese financial sectors; now and their futures
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（実施回/ Week）
Week 10
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（内容/ Contents）
Banking
Pros and cons of the prevalent main bank system.
-BIS and capital adequacy
-The luck of not being innovative
-Chances and limits of international banking
-The future of the banking industry in Japan
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（授業時間外の学習/ Assignments）
Hoshi & Kashyap Chapters 6 & 9
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（実施回/ Week）
Week 11
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（内容/ Contents）
Security firms / investment banks
On what should they focus in the aftermath of the global crisis?
-Glass-Steagall Act
-Capital markets
-Mega mergers
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（授業時間外の学習/ Assignments）
Flath Chapter 13
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（実施回/ Week）
Week 12
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（内容/ Contents）
Insurance
-Are Japanese people over-insured?
-Life, non-life and the third sector
-Gaiatsu and naiatsu (external and internal pressures)
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（授業時間外の学習/ Assignments）
Flath Chapter 13
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（実施回/ Week）
Week 13
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（内容/ Contents）
Japan Post, Agricultural Coop and Kyosai
Vested interests?
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（授業時間外の学習/ Assignments）
Flath Chapter 13
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（実施回/ Week）
Week 14
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（内容/ Contents）
Bank of Japan
Is deflation the BoJ's fault?
-Very basics of monetary policy
-What the BoJ can and cannot do
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（授業時間外の学習/ Assignments）
handouts
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（実施回/ Week）
Week 15
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（内容/ Contents）
Public and private financial systems
Will Japan go bankrupt?
-Cozy relations among households, businesses, finance sectors and government
-Impacts from the crisis in the Euro and other areas.
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（授業時間外の学習/ Assignments）
Flath Chapter 10
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Course Requirements and Assignments
a) Readings and Participation:
Reading assignments (textbooks and handouts) will be provided every session and students are asked to come to class prepared to discuss the contents. Students are strongly encouraged to participate in discussions.
b) Mid-term Group presentation:
At the end of the Part One, there will be a group presentation based on the topic assigned to each group earlier. The grouping will be done using a Zoom group automatic shuffling function in the first lecture.
c) Final Report:
Students will submit a final report (about five-pages long, single space) at the end of the course that is related to the coursework. Paper topic is free to choose but you need a prior approval from the instructor. Other readings may also be suggested according to your topic.
＜成績評価基準/Evaluation Criteria＞
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Report submission (final Report)
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40%
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Contributions to the class including presentations, class discussions
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30%
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Mid-term presentation
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30%
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Classroom Policies
・There is no prerequisite for this course. Having basic economics background is a plus, but not a must. If you have not studied basic economics, you are strongly recommended to self-study to make the coursework beneficial for yourself.
・It is impossible to learn and understand only at the classroom. Students need extensive readings in the required, optional and other materials.
・For the final report, you are free to choose your own theme, but required to obtain prior consent from the instructor.
＜テキスト/Textbook＞
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Hoshi, Takeo & Kashyap, Anil K
, Corporate Financing and Governance in Japan: The Road to the Future
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(Cambridge (MA), MIT, 2001)
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ISBN:978-0-262-08301-0
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Flath, David
, The Japanese Economy
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Third Edition
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(Oxford, Oxford University Press, 2014)
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ISBN:978-0-19-870240-5
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McKenzie, Colin & Stutchbury, Michael
, Japanese Financial Markets and the role of the Yen
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(Allen & Unwin Pty, 1992)
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ISBN:1-86373-240-3
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＜備考/Remarks＞
This course will be offered via Zoom. Zoom ID and Passcode for each lecture will be sent to your Doshisha University e-mail address a few days prior to each class. For any inquiries, please contact the instructor at the following e-mail address.
Instructor: Yukihiro Nishimura
Email: sk320015@mail.doshisha.ac.jp
Note: This syllabus will be subject to changes and/or revisions
Note to students: The ILA will be offering all courses through remote learning over the spring and fall semesters of the 2021 Academic Year. Course lecturers will send DUET messages with details on how to participate in the courses that you have registered for. Be sure to check the DUET system when course registration has been finalized in order to receive further instructions from your course lecturers.
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