The Japanese Economy During the Occupation Period (1945–1952)

This bachelor’s thesis, titled The Japanese Economy During the Occupation Period (1945–1952), aims to analyze the reforms and institutional changes implemented by the U.S. occupation administration in Japan and to assess the overall success of this transformation model. The thesis seeks to answer the main research question of the extent to which these reforms helped stabilize the war-torn country and whether they laid the groundwork for subsequent economic growth. The theoretical section begins by defining the framework of postwar reconstruction from the perspective of various economic schools of thought and offers a comparison with the German model. The practical section focuses on the specific consequences of the implemented reforms. The empirical findings are presented through tables and figures, utilizing primary statistical data supplemented by relevant secondary literature. Given that the examined reforms had both positive and negative consequences, the evaluation is based on a causal analysis and a synthesis of the findings. The conclusion of the practical section highlights the Korean War, which served as a powerful economic stimulus and enabled the country to achieve unprecedented economic growth. The results of the analysis demonstrate that the policies of the U.S. occupation administration represented a successful model of economic transformation. The implemented reforms removed structural barriers and established a stable institutional framework for a competitive market environment. The findings confirm that although the harsh stabilization measures temporarily triggered a short-term recession, they ultimately contributed to the overall economic recovery and created optimal conditions for capitalizing on the demand shock generated by the Korean War.