The Turning Point
The Turning Point
This chapter offers some interim conclusions about the successes of inflationary reconstruction, the end of the great inflation, and the beginnings of the “Schumpeterian boom” that followed. It discusses how the outbreak of the Korean War in 1950 resulted in international economic recovery. This was also when full economic stabilization came to Japan, fueled by Korean War spending by the United States. By the end of 1950, Japan had regained its position as the world's number one exporter of cotton cloth. The government's store of foreign-exchange currency more than doubled. Imports remained highly constrained. Price levels rose sharply, especially for producer goods. Against this overall movement, the relative stabilization of food prices adversely affected farmers, who on the whole had gained greatly in the inflation years. By the same token, it stabilized the livelihoods of consumers.
Keywords: Japan, postwar economy, economic boom, economic recovery, Korean War
Cornell Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.
