ABSTRACT
This chapter aims to examine the distinctive characteristics of High Economic Growth Period (HEGP) using macro economic theory, in an attempt to discover the facts behind them and to discuss the interrelationship of those facts. It focuses on the following four features of HEGP: the rate of growth accelerated as the period progressed, the capital coefficient remained low, investment rose sharply, to very high levels and the rate of personal savings also rose very sharply. According to the Economic Planning Agency’s National Income Statistics, Japan’s annual growth rate, in real terms, for the period 1955–70 was 10.2 per cent. The capital coefficient can be defined as the extra amount of capital stock required to produce one unit of national income. During the 1970s the Japanese economy experienced not merely an end to the acceleration in growth, but in fact a considerable fall in its growth rate.
