• 1960 Prime Minister Hayato Ikeda committed Japan to doubling its national income within the decade.
• Between 1960 and 1966: Japanese auto production quadrupled, Honda and Yamaha controlled 85% of the US motorcycle market, Japan had the world's largest shipbuilding industry, and the US-Japan trade deficit amounted to half a billion dollars.
• 1971 Without consulting Japan, President Nixon abandoned the gold standard, imposed wage and price controls, and a 10% surcharge on imports.
• 1974 President Nixon and Prime Minister Tanaka both forced out of office by scandals. Tanaka remains an important power broker within the LDP.
• 1985 US becomes a net international debtor; the Plaza Accords cut the value of the dollar (with respect to the Yen) by almost 50%).
• 1987 On Black Monday in October, Japanese investors withdrawing from the New York stock market caused the Dow Jones average to drop 500 points in a single day; by this time, 9 of the world's 10 largest banks were Japanese.

• Mancur Olson, The Rise and Decline of Nations: Redistributive coalitions hinder production of public goods, gradually cause "economic sclerosis"; crises that destroy entrenched coalitions lead to renewed economic growth.
• State-led industrial policy may respond less efficiently to changing circumstances than the market; less guidance is, therefore, better.

III. Strong State?

• Chalmers Johnson, "Comparative Capitalism"; Peter Katzenstein, Between Power and Plenty. Strong state and corporatist policymaking allow countries to pursue strategic advantage and to anticipate the market.
• Alexander Gershenkron, "Economic Backwardness in Historical Perspective"; late industrializers faced a "catch up" problem that required a strong state to manage the process of development and modernization.