COMM 376 Lecture Notes - Lecture 6: Currency War, Abenomics, Quantitative Easing
Document Summary
Japan"s network economy: structure, persistence, and change (course package p. Cluster of industrial, commercial and financial corporations. Independently managed firms maintaining close and stable business ties, cemented by governance mechanisms such as presidents" councils, partial cross-ownership, and interlocing directorates: horizontal: diversified corporations, usually representing separate industry sector, vertical: pyamids of large manufacturers, their suppliers etc. Big six: mitsui, mitsubishi, sumitomo (pre-war, dai-ichi kangyo, fuyo, sanwa (post-war) Shacho-kai (presidents" council): formal structure that regularly convenes with member firms: ample evidence of coordinated action but lack of centralized control. One-set principle (wan-setto shugi): groups have one and only one member from each major industry segment: bank is seen as leader, holds monthly council meetings, provides coordination with member firms, manufacturing/supply chain groups are second. Continuous vs. categorical membership: only things that can be evaluated are considered continuous , for example, commercial trade, lending ties, cross-shareholding, and director interlocks, many ties are not very clear and more discrete.
