Departmental Bulletin Paper 政府の救済策と市場動揺の収束(Ⅰ)
Remedies by the Government and Calming of Oscillation in the Markets (Ⅰ)

望月, 和彦

“Taisho Bubble” began to swell after the conclusion of Treaty ofVersailles. And the bubble collapsed in March 1920. The burst of bubblecaused panics in stock markets and commodity markets so that themarkets often closed in April and May. After reopening the marketsstagnated by the credit crunch and trade deficits and stumbled again whenNanajushi-Bank went bankrupt. In those days the Japanese trade deficitsaggravated by revaluation of Yen through devaluation of silver so that theJapanese exports to the silver standard countries like India and Chinastagnated.The burst of bubble damaged to the performance of many firms so thatthey shrinked devidends. The fall of price of raw silk decreased the incomeof farms so that they were forced to sell their rice to pay the cost ofproducing raw silk. The price of rice in kind and future market fell downfurther. The price of cotton yarn fell because the devaluation of silverdepressid exports of cotton yarn to China and India. In May it was clearthat the world economy went to depression.The prospect to recover the markets was mean. The price fall in stockand commodity markets didn’t stop. In commodity market future priceswere lower than spot prices. Traders expected further price down infuture. Nobody knows where the bottom price is. And the people feared apanic would come again.(to be continued)

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