Japan’s Economic Policy and Foreign Exchange Market Management in the Second Half of the 1970s

This chapter provides an insider’s account of Japan’s  fiscal, monetary, and foreign exchange rate policy management and balance of payments adjustment under the floating exchange rate system in the second half of the 1970s. An insider’s account is also provided on international deliberations and economic diplomacy at the summit level focused on monetary, fiscal, and foreign exchange rate policy management involving Japan and West Germany as well as the United States in an effort to accelerate world economic growth in the aftermath of the oil shock that occurred in 1973.