Japan in the global economy, we can divide the period in four phases. First – War reconstruction
Second – high growth
Third – stable economy growth
Forth – “bubble”
After World War II, the Japanese economy struggled to recover until it received a boost from the so-called special demands from the Korean War. To improve the production capacity of the economy, the Japanese government adopted the priority production system, focusing on the production of steel and coal, expecting spill over effects on other sectors of the economy.

Combined with the three major structural reforms - that is, the dissolution of "Zaibatsu," or financial conglomerates, reform of agricultural lands, and labor reform - these policies paved the way for the high economic growth that followed.
In 1956, the economic white paper declared: "Japan is no longer in the post-war period." During the period from 1956 to 1972, the economy grew on average 9.3 percent in real terms. These years are called the "high growth period." New technologies as well as new products required high investment. Dubbed as the "Consumption Revolution," durable consumer goods such as televisions, washing machines, refrigerators, cars, and air-conditioners spread rapidly. Exports also increased at faster paces, thanks to the modernization of production equipment and cost reduction by new technologies. Nonetheless, the rise in imports out-paced exports, leading to a negative contribution of net exports on average at minus 0.2% to GDP growth.
In 1967 the Japanese economy was experiencing its longest expansionary phase after World War II. Due to the overheating of the economy, prices were rising rapidly, especially in 1969 and1970. The economy continued to grow at over 10% in real terms. The Japanese economy was in a dilemma between the internal and external balances, which in turn required the tightening of fiscal