The Fiscal Policy Research Early Showa Period(1926-1936)

This paper mainly studies from1926to1937, about ten years before the Showaera of fiscal policy. This paper is divided into eight chapters, besides the first chapterof introduction, the text can be divided into the following four parts.The first part is the second chapter, the third chapter, mainly study of modernfinance policy establishment, Taisho Era fiscal policy as well as the Showa financialcrisis. Meiji government, the government of Japan from the western financialtheories, combined with its basic national conditions, established the modern budgetsystem, the modern financial system, the modern monetary system as well as themodern tax system. The basic establishment of modern financial system, guaranteeand promote the development of the industrial revolution in japan. Prior to the firstWorld War, Japan has initially become mainly in light industry of industrializedcountries. The outbreak of the first World War not only stimulated the developmentof heavy chemical industry, the international balance of payments sharp black word,which is Japan’s fiscal scale more and more big, the investment in fixed assets,current assets investment spending, expanding. War boom so that the continuousexpansion of enterprise scale, with war boom disappears, Japan began a long-termdepression, the Japanese government served as cabinet to take relief policy of crisisin enterprises, government spending is growing, debt, local debt amount increases,Japanese all circles to solve the economic problems of the Japanese hope on "Jinban" policy. But "gold ban" for tightening of fiscal policy, led to the outbreak of thefinancial crisis, can only rely on the friend will be active fiscal policy to restorestability. The fundamental problem of the Japanese economy is still not resolved.The second part is the fourth chapter, the main research on fiscal policy and itsfailure. In order to solve the fundamental problem of long puzzling the Japaneseeconomy, civil party cabinet minister Inoue Junnosuke introduced to the " liftedgold""austerity" is the main characteristic of "Inoue finance" policy. As therepresentative of Japan’s financial capital, Inoue advocated the hope that through thelifting of the Ban gold, gold can not only solve the problem of huge capital bank hands out and also revive Japan industry, realize the balance of internationalpayments. The king is the most important thing for "austerity", but in1929, the1930budget are not compressed down, in the Anglo American financial support, theformal implementation of the lifting of the ban Inoue gold. But the lifting of the banand the world economic crisis coincide, Japan’s economic indicators have hit rockbottom. Inoue’s policy tightening has not adapted to the economic need, but wellcontinue to insist on. Finally, because of the cabinet is not consistent, As Gerakancabinet fell, The Business finance fiscal policy has been replaced by Takahashi.The third part is the fifth chapter, the sixth chapter and the seventh chapter,mainly study Takahashi finance and into the quasi wartime finance. Takahashiminister take Japan’s economic from the crisis and raise the "918" incident after theballooning of military spending, while the free capitalism means have been unable tosave the crisis that can survive as a premise, rather than " treat the foot when the foothurts--no overall plan for a fundamental transformation". Takahashi Korekiyoadvocated a boom and bust cycle, through fiscal stimulus to enlarge effectivedemand, the annual budget and achieve a balanced budget. In this financial guidance,Takahashi took on the decisive off the gold standard, the gold reserve currencyissued and decoupling, allowing the exchange rate to fall, reducing bank interestrates and financial stimulus measures. After515incident, further strengthen themilitary forces in the military, as the center, the government fiscal deficit began toswell. Fiscal deficits mainly by issuing bonds to fill the deficit, in order to make thebond issue smoothly, these bonds by the Bank of Japan subscription. But rely on thismethod is likely to lead to inflation, so this method is "expedience method". With therecovery of the Japanese economy, Takahashi embarked on "finance", but wasstrongly opposed to military forces, in the "two two six" incident Takahashi waskilled, Takahashi fiscal end. After Takahashi Shio, the fascist fiscal system throughfinancial, Racecourse fiscal, HeWu finance finally established, establish of quasiwartime finance system take the Japanese economy fully into the war orbit.Tax as the main source of state revenue, is an important part of our country. Taxcontent is changing with the change of economic structure, after the First World Wardue to long-term depression, to alleviate the burden on enterprises, and after the1926tax cuts to direct tax reform as the center; national, local tax system has beeninitially established. In order to solve the problem of local fiscal deterioration,masatomo will Tanaka cabinet that rent, business profit tax Commission for local,and formulate the relevant legislation, but because the friend will fell to the cabinet and settle a matter by leaving it unsettled. In the financial period, due to sign theLondon Naval Treaty, it provides a space for tax cuts, intended to reduce the burdenof enterprises. But the fiscal revenue continued to decline, Inoue had to consider thetax increase, but not to implement, if the collapse of this cabinet. The QuanYangcabinet minister Takahashi Yoshikiyoshi to withdraw the tax increases, to issuedeficit bond compensate financial deficit. In1934, the Japanese economy hasimproved slightly, pursue the perfect finance minister Fuji, established theprovisional profits tax. All the Racecourse fiscal, HeWu finance and fascist fiscal hasa temporary emergency characteristics. In1940, Mine Kojun cabinet issued taxreform scheme, namely the1940tax reform. This is in order to meet the needs of thewar to further expand the tax reform, the basic feature is the flexibility and simplicity,and take the burden of the war to the normal people.