This book, first published in 1982, closely examines the Japanese investment in the industries of its puppet state Manchuria in the years 1930 to 1945. Attention is paid to industrial capital by source and type, facilitating the analysis of the relationship between the different investment components on one hand, and economic and institutional factors on the other. The course of inflation is also traced and its relationship to industrial investment studied. The Manchurian experience throws light on the volume of capital available through inflationary processes, the point up to which inflationary financing can successfully be carried, and the institutional factors necessary to make such a policy effective in increasing real investment.
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