NEWS & EVENTS

Making Sense of Japan’s New Capitalism: A Conversation with Dr. Paul Sheard

On Tuesday, March 28th, Dr. Paul Sheard, distinguished expert on Japanese economics, led a discussion on the macroeconomic situation and outlook for inflation in Japan in the context of Prime Minister Kishida Fumio’s “New Capitalism.”

The discussion was moderated by Dr. Kent Calder, director of the Reischauer Center. Dr. Sheard delved into the outlook for Japanese monetary policy under the new leadership, how Japan’s system of corporate governance is evolving, and the implications therein for the wider “stakeholder capitalism” debate. Dr. Sheard views Kishida’s “New Capitalism” as more evolutionary than revolutionary, stating that its significance needs to be appreciated through a different lens. Highlighting the need for rescaling, redistribution, and increased fluidity and liquidity in the Japanese labor market, Dr. Sheard advocated for a more bottom-up approach, in contrast to the traditional Japanese top-down approach to fiscal and monetary policymaking.