THE MAEKAWA REPORT AND ITS CONSEQUENCES ON THE JAPANESE ECONOMY
THE MAEKAWA REPORT AND ITS CONSEQUENCES ON THE JAPANESE ECONOMY

Summary/Abstract: As the name already states, the present article proposes to analyze the Maekawa Report and the consequences from its implementation. Once with the yen’s strong appreciation, as a result of the Plazza agreement, the economic growth model based on an aggressive export policy was not feasible any more. Additionally, to eliminate the existing tensions with the United States, there has been a need to equilibrate the trade balance. Hence, there have been attempts to support the internal demand by creating markets for the American products. On the other hand, on the offer level, there have been attempts to give up branches with a low added value, respectively to liberalize the domestic market. Furthermore, there have been endeavors to increase the investments in western states, in order to cover the demand from those markets with products made in those areas. Thus, decreasing Japanese exports. The main consequences of the implementation of the Maekawa Report have been the following: the decrease of the trade surplus in JPY (and its maintenance in USD), Japanese financial extension, the advancement of FDI.

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