Stabilize the Peasant Economy: Governance of Foreclosure by the Shogunate

Masaki Nakabayashi ()
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Masaki Nakabayashi: Institute of Social Science, The University of Tokyo, Postal: Institute of Social Science, The University of Tokyo, Hongo 7-3-1, Bunkyo, TOKYO 1130033, Japan, https://sites.google.com/site/5600043/
Authors registered in the RePEc Author Service: Masaki Nakabayashi

No f187, ISS Discussion Paper Series (series F) from Institute of Social Science, The University of Tokyo

Abstract: Regulation of foreclosure in a financial crisis has been centuries long, often politicized conundrum to authorities. Japan in the fifteenth and sixteenth centuries had free financial, land and coercive labor markets. They were complementary institutions of the Japan's first age of the laissez-faire financial capitalism. It raised the growth but resulted in recurrent financial crises. Therefore, the Edo (Tokugawa) shogunate, 1600--1868, banded coercive labor, protected peasants' property right and regulated the farmland-collateral loans. The key was an optimal degree of regulation. The shogunate first banned foreclosure and invited a credit shrink. In the first half of the eighteenth century, the shogunate introduced legislation to legalize foreclosure of pledged farmland as clarifying the rights of borrowers. The regulation asymmetrically lowered interest rates for timely repayment.

Keywords: farmland-collateral loans; farmland foreclosure; free labor; peasant ownership; early modern Japan (search for similar items in EconPapers)
JEL-codes: G18 K11 K12 O12 Q15 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2017-09-22, Revised 2017-11-28
New Economics Papers: this item is included in nep-his
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Journal Article: Stabilize the peasant economy: Governance of foreclosure by the shogunate (2018)
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