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Unformatted text preview: reform was ambitious and, even though it has
been toned down (with important features, such as
reducing the safety net, postponed), it includes
elements which will further change Japan’s financial model (Beason and James, 1999; Horiuchi,
2000; Kanda, 2000).
Furthermore, both regulatory changes and macroeconomic performance have already resulted in
large changes in corporate-financing patterns for
some classes of firms (Hoshi and Kashyap, 1999).
This, in turn, has altered the relationship of banks
with their traditional clients, and forced them into
new areas of business. Hoshi and Kashyap see the
logical continuation of this trend driving corporate
financing patterns towards US levels of bank-debt
finance, with the result that major shake-outs will
reduce the banking infrastructure by approximately
30 per cent.18
Turning to the labour market, Genda and Rebick’s
assessment in this issue of rather slow change is
echoed by the OECD. In this area, however, the
impetus for change will come from the private
sector. Current and historical patterns have not
been predominantly the result o...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.
- Summer '13