Chapter

Opening the Door to a Hurricane, 1930–1931

Mark Metzler

in Lever of Empire

Published by University of California Press

Published in print March 2006 | ISBN: 9780520244207
Published online March 2012 | e-ISBN: 9780520931794 | DOI: http://dx.doi.org/10.1525/california/9780520244207.003.0012
Opening the Door to a Hurricane, 1930–1931

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This chapter outlines the shape of the deflationary breakdown that followed Japan's domestic crisis. As soon as Inoue Junnosuke and Hamaguchi Osachi opened the Bank of Japan's gold window on January 11, 1930, a kind of gold rush began. Mutō Sanji notes that in a time of such drastic changes coming from outside, Finance Minister Inoue's careless and unprepared lifting of the gold embargo at the old parity had thrown the industry into difficulties and was exactly like deliberately leaving the door open in a storm. Inoue's “open door” policy placed Japan's monetary system into unmediated communication with the gold-based U.S. financial system.

Keywords: domestic crisis; deflationary breakdown; Inoue Junnosuke; Hamaguchi Osachi; Bank of Japan; Mutō Sanji; gold embargo

Chapter.  10699 words.  Illustrated.

Subjects: Asian History

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