A Questionnaire for Prof. Lapavitsas

by Tatsuro KAKESHITA

1. Financial instability.
What is the financial instability？
Is it originally from Minsky, H. P.?
Do speculations, like the 'bubble' often occur in the capitalist economy? Do you think the capitalist economy has originally the financial instability or not?
Is the Japanese financial system more unstable than other countries?
The combined recession is a new word made by Yoshikazu MIYAZAKI from combined pollution.
It means the financial sector leads this 1990s real recession of the industrial sector in Japan.
Do you have a same opinion?

2. Japanese and other economies.
2.1. What do you think about the same and different points between Japanese and Anglo-Saxon financial systems, especially the 'main bank' relationship and interlocking shareholding?
I think the strong state power is a characteristics of the Japanese capitalism.
How do you think about the interrelation between the state and the market power?
Is the state power within the market economy?
If so, is the Japanese market different from what the neo-classical originally offered, under the condition without air from Physics, isn't it?
And do you have any suggestions about the future of the Japanese state power?

2.2. The theoretical progress below 1, 2, 3 may be useful for understanding the Japanese financial system.
1. New Institutional Economics, Coase, R. H. and Williamson, O. E. , for example the transaction cost.
2. The principal-agent relationship, especially owner-manager's from the Berle's and Means's classic 1932 study, for example the agency theory and cost, in relation to interlocking shareholding.
3. Economics of information, especially asymmetry of information, Akerlof, G. A. and Stiglitz, J. E., for example used car and labour markets, in relation to the Japanese 'main bank' relationship.
Do you approve the above 1, 2, 3?

3. Financial regulation and deregulation.
3.1. What's the meaning of financial regulation?
Do you think financial regulation is needed in developing countries, like Japan in the 1950-60s?
If the financial regulation provided finance to industry in the High Growth Era in Japan, had the necessity of financial regulation disappeared or not?

3.2. When did the financial deregulation start in Japan? After the crisis of 1973-75?
In relation to the double kokusaika, the national debt and internationalisation.
The rapid increase of the national debt after late 1970s made a large secondary market and RPs, gensaki of Treasury securities.
These markets set the interest rate freely.
Then, CDs and Japanese MMFs, chukoku funds appeared.
Does internationalisation mean foreign pressure, gaiatsu after the 1984 Yen-Dollar Committee between Japan and United States?
It is said that the pressure of the meeting had money markets deregulated, for example the non-collateral system and the euro-yen.
And the pressure made new money markets, for example TBs, CPs and the JOM.
The national debt and internationalisation, which is the main stream of the financial deregulation?

3.3. This(3.2.) problem is also related to the cause of the financial deregulation.
How do you think about the market power of the capitalist economy?
Did this power cause the financial deregulation in Japan?
Or, did foreign pressure, gaiatsu for example the 1984 Yen-Dollar Committee between Japan and United States cause financial deregulation?