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Financial Crises, Japan's State Regime Shift, and Tokyo's Urban Policy

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  • Kuniko Fujita

    (Department of Sociology, Michigan State University, East Lansing, MI 48823, USA)

Abstract

The 2008 global financial crisis, a major crisis in the history of capitalist development, has called for drastic state activism and market regulation and may lead to state regime shift in many parts of the world. Relying upon John Maynard Keynes's crisis theory, that slumps were always possible in a market system left to itself, and that there was therefore a continuous role for government in ensuring that they did not happen, I look at the case of Japan's state regime shift which two previous financial crises have enabled. I argue that the 1989 crisis catalyzed Japan's developmental state's transition to a new direction and the 2008 global crisis continued to push ongoing shift further. I focus on state and Tokyo's urban policies which played a pivotal role in state regime shift, and assess why state and urban policies have failed to resolve Japan's contribution to global imbalances and avoidance of further crises. I conclude that state and urban policy analysis in the past few decades cannot be dissociated from financial crises, and that Japan's state regime shift is a crisis outcome rooted in Japan's political economy—one of many variations of market economies in the postcrisis multilateral global order.

Suggested Citation

  • Kuniko Fujita, 2011. "Financial Crises, Japan's State Regime Shift, and Tokyo's Urban Policy," Environment and Planning A, , vol. 43(2), pages 307-327, February.
  • Handle: RePEc:sae:envira:v:43:y:2011:i:2:p:307-327
    DOI: 10.1068/a43111
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    References listed on IDEAS

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    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2014. "This Time is Different: A Panoramic View of Eight Centuries of Financial Crises," Annals of Economics and Finance, Society for AEF, vol. 15(2), pages 215-268, November.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    3. Taylor, Lance, 2011. "Maynard's Revenge: The Collapse of Free Market Macroeconomics," Economics Books, Harvard University Press, number 9780674050464, Spring.
    4. Hatch,Walter & Yamamura,Kozo, 1996. "Asia in Japan's Embrace," Cambridge Books, Cambridge University Press, number 9780521565158, September.
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    Cited by:

    1. Natacha Aveline-Dubach, 2014. "New Patterns of Property Investment in " Post-Bubble " Tokyo [Les nouvelles formes de l'investissement immobilier dans l'après-bulle à Tokyo]," Post-Print halshs-01242564, HAL.
    2. Kohei Kawai & Masatomo Suzuki & Chihiro Shimizu, 2019. "Shrinkage in Tokyo’s Central Business District: Large-Scale Redevelopment in the Spatially Shrinking Office Market," Sustainability, MDPI, vol. 11(10), pages 1-17, May.

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