Book Review:"America Knows that Japan’s Economy Will Revive" (in Japanese)

AmericawaNihonKeizainoShuufukuwoShitteiruAmerica Knows that Japan’s Economy will Revive (in Japanese)” (Kodansha Press, January 2013, 271 pages, ISBN978-4-06-218151-8) by Professor Emeritus Koichi Hamada of Yale University, who is also Director of FUTI, is drawing a great deal of interest and is among the best sellers. Its main message is that if Japan increases currency in circulation by monetary easement, the prices of goods will go up and the value of the Japanese Yen will go down due to the supply-demand relationship; thus, export-oriented industry will gain more profits than the loss that import-oriented business will suffer. But the Bank of Japan failed to act, so criticizes the author.
The first “arrow” that Prime Minister Abe proposes among the three arrows of his “Abenomics” is “Bold monetary easing policy,” which Prof. Hamada has been advising Mr. Abe for some time. Thus this book is attracting a great deal of attention. According to the book reviews of, most reviewers give him five stars, but some economists and economic critics oppose the author’s arguments.
Table of Contents

  • Preface―As a “Final Lecture” of my fifty years of research life.
  • Introduction: An open letter to my former student, the Governor of BOJ
  • Chapter 1: Country that ignores common sense known in economic theory for 200 years
  • Chapter 2: Economic policies for BOJ and the Ministry of Finance
  • Chapter 3: Japan’s economy discussed by Economic geniuses
  • Chapter 4: Economic theory can save Japan, nevertheless
  • Chapter 5: Shock of St. Valentine’s Day, 2012
  • Chapter 6: Policies absolutely necessary before increasing taxes
  • Chapter 7: Trap of “Government and Media Compound”
  • Final Chapter: Japan can revive soon now.
  • Postscript―To regain the “Beautiful Country”

In page 265 of the Postscript, Professor Hamada refers to FUTI (Friends of UTokyo, Inc.)

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