ABSTRACT
The three major external shocks to the post–World War II Japanese economy have come from the Korean War during the early 1950s, the energy crisis of 1973–1974, and external pressure on Japan to open its economy, especially after 1980. Mitsui has never regained its prewar position, allowing Mitsubishi to become Japan's strongest keiretsu during the postwar era. Japan achieved record economic growth without major increases in inequality of incomes, and income distribution appears to be more equal than in most Western nations, although data inadequacies make it impossible to be sure. In fact, the Japanese carried out the land reform enthusiastically, viewing it as an extension of their own wartime policy toward the countryside. The Dodge Deflation had a favorable long-run impact on Japan, although at some immediate cost in terms of higher unemployment, reduced living standards, stagnating output, and a rise in small-business failures due to the sudden drop in demand.
