Despite recent upheavals, Japan remains one of the dominant economicpowers at the end of the twentieth century. Yet the Japanese economy is one ofthe most misunderstood phenomena in the modern world. Conventionally, Japan ispresented as the exception to mainstream economic theory: an exception to thestandard models of modern economics. This book demolishes that notion, bringingthe full analytical power of economic thought to all aspects of the mostdramatic economic success story in recent times.David Flath concentrates on four main themes:Japan's economic growth and developmentJapan's integration with the world economyGovernment policies and their effectsEconomic institutions and practicesBy applying common economic tools such as the Solow growth model, Modigliani'slife-cycle model of saving, Becker's theory of investment, Samuelson's theory ofrevealed preference, Coase's exposition of the problem of social cost, and themodern theory of industrial organization, this book shows the mainstreamprinciples of economics apply in Japan as successfully as they do elsewhere.Aimed at 3rd/4th year undergraduate and graduate courses on Japan, this bookwill be indispensable both for students and instructors alike. Lucidexplanations and comprehensive and rigorous analysis make it a natural choicefor any interested in comprehending the rise of the Japanese economy.