The Dynamics of Financial Market Reform in Japan, 1975–95
The seeds of financial market reform in Japan were sown in the 1970s. At that time virtually all interest rates were regulated or managed. Numerous measures restricted capital flows both into and out of Japan, as well as the domestic activities of foreign financial institutions. Myriad laws and regulatory practices defining the allowable business activities of specialised financial institutions produced an extremely compartmentalised financial market. Taken as a whole, the regulatory structure supported a domestic financial market with very limited price-based, cross-sectoral or international competition.
KeywordsShrinkage Assure OECD Glean Monopoly
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