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Answer:
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Answer:
Japan experienced the deepest economic downturn in modern history during 1930-32. This should not be confused with the banking crisis of 1927 (previous lecture).
There were two causes of this depression.
(1) Internally, the Minsei Party government (July 1929-April 1931, with prime minister Osachi Hamaguchi, finance minister Junnosuke Inoue, and foreign minister Kijuro Shidehara) deliberately adopted a deflationary policy in order to eliminate weak banks and firms and to prepare the nation for the return to the prewar gold parity (fixed exchange rate with real appreciation). The policy of deflation and return to gold was strongly advocated and implemented by finance minister Inoue.
(2) Externally, Black Thursday (Wall Street crash) of October 1929 and the ensuing Great Depression in the world economy had a severe negative impact on the Japanese economy.
Its main consequences on the Japanese economy and society were as follows:
Explanation:
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