Japanese Studies on Ricardo after World War II

Shigemasa Sato

Abstract: This paper is an outline of studies on the political economist in Japan after World War II. Japanese studies on Ricardo have followed the Japanese tradi- tional learning style of thoroughly reading the original texts, and recent research has broadened to include Ricardo’s contemporaries. Additionally, and particularly since the foundation of the Ricardo Society in Japan in 2000, researchers have endeavored to send their information to other countries. In the first section of this paper, I survey the articles about Ricardo, and in the second section, I trace the historical progress of Japanese studies. I divide their approximately 70 years of Japanese research into three periods: the postwar period to the 1960s, the 1970s to the 1980s, and the 1990s to today. The final section contains perspectives on Japanese studies on Ricardo. JEL classification numbers: A 12, B 12, B 31.

classical economics had been advanced. Al- I though the bulk of Japanese studies in those In this paper, I intend to offer an outline of days were focused on Smith or Marx, there Japanese studies on David Ricardo after did emerge articles from this period that dis- World War II. I attempt to discuss as many cussed Ricardo. Hatori (1966) prepared a studies as possible, because Japanese studies review of Japanese studies from 1963 to on Ricardo have been, like those on other 1966, particularly those on the classical theo- classical economists, almost unknown in ry of capital accumulation. Takagi and Naka- other countries. mura( 1966) surveyed studies from between Before starting on this subject, I must 1950 and 1965 on the theory of money and note that there have already been recent arti- credit. Mazane and Mizokawa( 1968) pre- cles on this same theme, which I show in Ta- sented the history of the introduction of clas- ble 1. sical economics in Japan from the Meiji pe- In the 1960s, nearly twenty years after riod. the end of the war, the Japanese Society for Subsequently, in the 1970s and 1980s, the History of Economic Thought set up a there were three articles concerning this project to survey how Japanese studies on theme. Nakamura( 1972), succeeding Hatori,

The History of Economic Thought, Vol. 54, No. 2, 2013. Ⓒ The Japanese Society for the History of Eco- nomic Thought. Sato: Japanese Studies on Ricardo after World War II 63

Table 1 Hatori( 1966) / Takagi and Nakamura( 1966) / Mazane and Mizokawa( 1968) Nakamura( 1972) / Nakamura and Aramaki( 1982) / Mizuta( 1985) Nakamura( 2007) / Fukuda( 2008) / Sato( 2008) searched the monographs from between anese Society for the History of Economic 1966 and 1972 that had referred to Ricardo; Thought published a book commemorating Nakamura and Aramaki( 1982), succeeding its fortieth anniversary. Some fifty mono- Takagi and Nakamura, searched between graphs were contributed, with the challenge 1966 and 1981; and Mizuta (1985), suc- of clarifying the significance of studying ceeding Nakamura, searched between 1972 classical economics in Japan. Three writers and 1984. In these three monographs, Naka- pursued the theme of Ricardo. Nakamura mura classified Japanese studies on Ricardo (1992) contrasted Ricardo with Malthus on into four genres: the theory of value, the the- the theme of general glut and contended that ory of rent, the theory of capital accumula- this theme should be studied in relation not tion, and the system of Ricardo’s theory it- to the theory of crises but to the theory of self. He argued each of them elaborately. In capital accumulation. Mizuta( 1992) empha- Nakamura and Aramaki( 1982), Nakamura sized that the “natural price,” one of the most addressed the period from the mercantile important terms of Ricardo’s theory, occu- system to the Bullion Controversy in the ear- pied a unique position in Ricardo, as con- ly nineteenth century. Mizuta( 1985) also trasted with Smith or Marx. Senga( 1992) classified the Japanese studies into four gen- discussed the need for dialogue between po- res: early Ricardo, the structure of Ricardo’s litical economy and economics criticism. theory, the theory of value, and the theory of These monographs offer views on what were distribution and capital accumulation. He the issues of emphasis in Japanese studies on collected a large number of articles, more Ricardo at that time. than 110 pieces. Thus, through these writings and surveys, After the year 2000, more articles sur- we can easily learn the history of Japanese veyed Japanese studies on Ricardo. Nakamu- postwar studies on Ricardo and understand ra( 2007) presented panoramic views of the the outline of the discussions on Ricardo in history of Japanese studies on Ricardo’s On Japan. In this paper, I follow these previous the Principles of Political Economy, and works with a discussion of a collection of Taxation since the Meiji period. Fukuda new monographs, adding to the long and (2008) efficiently summarized the Japanese grand lists of the works of Ricardo. May a controversy around Ricardo’s early theories grand view be opened to this field! of value and of profit, particularly focusing II on the criticism of Sraffa’s “corn-ratio theo- ry.” Sato( 2008) surveyed Japanese articles There are many number of books discussing about Ricardo’s theory of currency from Ricardo published after World War II; in Ta- 1982 to 2007. ble 2, I offer a selection of books in which Additionally, I note that in 1992, the Jap- Ricardo’s name appears in the book’s title or 64 経済学史研究 54 巻 2 号

Table 2 Books have the name of Ricardo published in Japan after World War II Tamanoi( 1954)/ Hori( 1958)/ Mazane( 1959) Ohnishi( 1969) Hatori( 1972)/ Tsutsui( 1973)/ Mazane( 1975)/ Nakamura( 1975)/ Hirao( 1975)/ Hishiyama( 1979) Hatori( 1982)/ Matsuura( 1982)/ Morishima( [1989] 1991)/ Senga( 1989) Takamasu( 1991)/ Yanagida( 1994)/ Hatori( 1995)/ Nakamura( 1996)/ Takenaga( 2000) Ebihara( 2004)/ Sato( 2006)/ Fukuda( 2006)/ Nakamura( 2009) subtitle. Of course, in addition to these, many omists think about Japanese economic other books and monographs have discussed growth? Will the development of capitalism Ricardo, possibly in the tens of thousands. be possible? Studies on Ricardo were of From this large store of works, I select some course included in these considerations. that characterize mainstream Japanese stud- Yoshizawa( 1953) was a leading mon- ies on Ricardo. For the convenience of read- ographist in those days. He analyzed Eng- ers, I divide the studies into three periods: land’s transition to capitalism after the Napo- the postwar period to the 1960s, the 1970s to leonic War, and he characterized Ricardo’s the 1980s, and the 1990s to today. position in classical schools as that of an an- chorman who brought classical schools to 1. From Postwar to the 1960s perfection. Mazane( 1959) examined Ricar- At the end of the war, many books, which do’s changing views on machinery, in partic- had perhaps been prepared during the war, ular whether or not the adoption of machin- were published all at once. Ide( 1948)wrote ery can offset the unemployment of the on Ricardo’s theory of the public debt, and working classes. Toyokura( 1959) investi- Nawa( 1949) argued Ricardo’s theory of In- gated the theory of crisis in classical schools ternational Value. Hori( 1949) reprinted his by making use of correspondence between previously published 1929 book and, in Ricardo and Malthus. 1958, further developed the subject of Ricar- In 1963, Hatori looked at whether the de- do’s understanding of the relationship be- mand for labor depended on circulating capi- tween value and distribution. New genera- tal or on gross production, and, if the former, tions had succeeded the older authors and whether unemployment would necessarily had been steadily increasing their scholastic increase during the accumulation of capital. strength. Tomizuka (1965) discussed the classical In 1954, Tamanoi tackled the theme of theory of capital accumulation in regard to theoretical history from Ricardo to Marx. the theory of crisis and showed the structure There are also a number of excellent mono- of accumulation in Ricardo’s theory; he ad- graphs discussing Ricardo’s theory of cur- vocated of the concept of the “equilibrium rency, including Okahashi( 1956) and Fu- orbit of accumulation.” Mizokawa (1966) kamachi( 1959). observed the differences between J.-B. Say On the whole, the primary theme in this and Ricardo and explained that Say had period was a concentration on the theory of based his theories on the goods market rather capital accumulation. What should the econ- than the capital market of Ricardo’s theories. Sato: Japanese Studies on Ricardo after World War II 65

Nakano( 1969) traced the theory of crisis in books with Ricardo’s name in the title or the Ricardo’s speeches in Parliament and, in con- subtitle. Hatori( 1972) analyzed fundamen- trast with Say, insisted that Ricardo well rec- tal differences among Smith, Malthus, and ognized the general depression. Ricardo in the constitutions of accumulation; In addition, we must note two more Hatori initiated criticism of the corn-ratio books, by Kamata in 1968 and Ohnishi in theory earlier than anyone else. Tsutsui 1969. The former elaborately addressed the (1973) argued Ricardo’s theory of distribu- influence of classical economics on early so- tion and value from two points of view, static cialism. The latter was the only book pub- and dynamic. Mazane( 1975) wrote an in- lished in Japan in the 1960s that had David troductory book on Ricardo, skillfully ar- Ricardo’s name in the title, and it attempted ranging Ricardo’s life and theories, and he to present a panoramic view of Principles. offered Japanese academics a refined orien- tation to Principles. Nakamura (1975) 2. The 1970s to the 1980s closely read Ricardo’s principal writings and The 1970s saw the first postwar peaks of letters from the Bullion Controversy to his Ricardo Mountain in Japan. Of special note Principles, and he inquired into the genesis to the Japanese Ricardian was a translation of Ricardo’s theory of value. Hishiyama of Sraffa’s The Works and Correspondence (1979) interpreted Ricardo’s theory of accu- of David Ricardo( 1951-73). This transla- mulation, distribution, and value, in connec- tion project began in 1953 when Professor T. tion with Sraffa, compared with the theories Hori met with Piero Sraffa and gave willing of Walras, Marshall, and the post-Keyne- consent to the Japanese translation. Volume sians; Hishiyama emphasized the need to re- 1 appeared in 1969, followed by volumes 2, estimate Ricardo’s labor theory of value. 3 and 4 in 1970; volumes 5 through 11 were There are additional books with close published one after the other, and nearly all connections to Ricardo. Fujitsuka (1973) volumes had been translated by the early vividly described the Political Economy 1970s(see Table 3). Subsequently, it be- Club: its rules and regulations, members, came possible to read the majority of Ricar- topics of discussions, and intellectual atmos- do’s writings in Japanese and thus obtain a phere. Ebihara( 1974) argued the causalities bird’s eye view on Ricardo’s activities. Japa- between the accumulation of capital and the nese studies on Ricardo became broader, and working class, especially in connection with more precise, comprehensive, and accurate. the theories of crises and unemployment of There were in the 1970s five theoretical the classical economists such as Smith, Table 3 Japanese Translations of the Works of Ricardo (supervisor and publishing year) Sraffa’s editions: I-IV( 1951) : V-IX( 1952) : X-XI( 1973) Japanese editions: III( S. Suenaga: 1969) // IV( Y. Tamanoi: 1970) // VI( T. Nakano: 1970) X( T. Hori: 1970) // II( K. Suzuki: 1971) // VII( T. Nakano: 1971) I( T. Hori: 1972) // VIII( T. Nakano: 1974) // IX( T. Nakano: 1975) V( T. Sugimoto: 1978) // XI( T. Sugimoto: 1999) 66 経済学史研究 54 巻 2 号

Ricardo, and the Ricardian socialists. Hirao Ricardo, offering fresh interpretations of his (1975) studied the Ricardian socialists work and introducing the emerging leaders Hodgskin, Thomson, Gray, and Bray. of Japanese Ricardiana. In 1982, Hatori discussed Ricardo’s early theory of value and distribution, particularly 3. The 1990s to Today around the corn-ratio theory, rereading At the end of the twentieth century, there Ricardo’s last manuscript, Absolute Value were three books on David Ricardo. Hatori and Exchangeable Value, and contrasting it (1995) continued to analyze the relationship with Malthus. Matsuura( 1982) provided a between value and distribution in Ricardo’s compact introduction to the first six chapters theory; notably, he investigated how the the- of Principles, with particular emphasis ory of value could determine the rates of dis- on the theory of machinery. Morishima tribution in three classes, and he also exam- ([1989] 1991) analyzed Ricardo’s econom- ined Ricardo’s theory of machinery and of ics from the view of general equilibrium the- bounties. Nakamura(1996) analyzed Ricar- ory, looking at prices, revenues, economic do’s original texts from the period of the Bul- growth, and theoretical paradigms. Senga lion Controversy and emphasized the impor- (1989) raised the problem of how Ricardo tance of distinguishing between gold as com- had understood the relationship between pol- modity and gold as currency. He insisted that itics and economics and proposed the origi- this distinction was certainly a turning point nal interpretation that Ricardo had modified in Ricardo’s theory of value in his departure the concept of relative value and from this, from Smith’s theory; this distinction clarified began speaking of absolute value. why Ricardo later had to modify the theory We must furthermore refer to additional of value and why he had to separate in Prin- works. Negishi( 1983) discussed Ricardo in ciples the chapter on wages from the chapter the historical context from classical econom- on prices. Takenaga( 2000) studied Ricar- ics to Keynes. Matsumoto( 1989) analyzed do’s theories of value and money. From pas- Srrafa’s Production of Commodities by sionate analysis of both Principles and Abso- Means of Commodities and noted Ricardo’s lute Value, he concluded that the core point theory of profits and invariable standard of of Ricardo’s value theory was not in labor- value through the lens of Sraffa’s texts. We value theory but in cost-production theory. must also acknowledge the series of books Furthermore, from inquiring into the original edited by T. Hayasaka and F. Tokinaga texts since The Price of Gold, he argued (1984-87). This series, composed of mono- against Marx’s interpretations of Ricardo’s graphs by a number of young Japanese quantity theory of money. scholars, looked at classical economics and Also in the 1990s, Mori( 1992) explored covered a very broad range of discussion theories of economic growth in the classical points, e.g., Locke, Hutchison, Hume, Steuart, economics of Smith, Malthus, Ricardo, and J. Anderson, Smith, J. S. Mill, Turgot, Condil- S. Mill. Concerning Ricardo, Mori analyzed lac, Say, Sismondi, Proudhon, Marx, and P. Principles, demonstrating its fundamental Verri. Eight authors contributed articles on chapter structure, and argued the theories of Sato: Japanese Studies on Ricardo after World War II 67

distribution, accumulation of capital, and could be characterized as the analysis of dis- economic growth. Takamasu (1991) and tribution and growth. Nakamura (2009) Yanagida( 1994) attempted to apply Ricar- gave an extensive and generous description do’s theory of comparative costs to contem- of Ricardo’s life-his birth, religion, busi- porary trade and business. Takamasu rejected ness, writings, activities in Parliament, and the idea that economists protect the status death. In this book Nakamura offers us cor- quo and criticized the Heckscher-Ohlin the- pus of his long year of study on Ricardo, in orem and dependency theory. Yanagida ana- particular Ricardo’s theories of value and lyzed the verifiable studies on productivity, money, and tries anew to tackle Ricardo’s exports, and direct foreign investment in Ja- parliamentary reform activities. pan, the , West Germany, and Other books that refer to Ricardo include South Korea, and he, in 2002, further devel- Ohtomo’s( 2001) study on Ricardo’s theory oped this subject. of credit from the mercantile system to the There are also two monographs of note period of the bullion controversy in the nine- from the late 1990s. Y. Sato( 1999) estab- teenth century; Ohtomo closely traced Ricar- lished the framework of Ricardo’s political do’s theoretical progress in this field from science through the examination of his “ingot The Price of Gold to Plan for the Establish- plan”; Sato insisted that Ricardo’s theory of ment of a National Bank. In 2004, Dome ar- money was not based on the quantity theory gued Ricardo’s theories of government ex- of money. Watarai( 2000) introduced Ricar- penditure, taxation, and public debts in the do’s activities in establishing some saving development of his theory of public finance banks in England and traced Ricardo’s stanc- in Britain. Hoshino( 2010) took up the dif- es against England’s Poor Law. ferences between Smith and Ricardo in their Between 2001 and 2010, there were four theories of rent and of labor commanded. books that featured Ricardo’s name in the ti- Onuma( 2011) analyzed the difference be- tle or subtitle. Ebihara( 2004) studied the tween Malthus and Ricardo in the theories of theory of accumulation of capital in the clas- value and rent. Ishii( 2012) looked at the sical economics of Ricardo, Malthus, and problem of poverty in capitalism by examin- Marx. With regard to Ricardo, he focused on ing the texts concerning machinery in Ricar- the theory of machinery in connection with do, Barton, and Marx. Sismondi and Barton. S. Sato( 2006) read III closely the chapters in Principles on taxation (8-18) as well as some controversial later In the twenty-first century, Japanese studies chapters( 19-23, 25). Sato searched for the on Ricardo will of course continue. In this outline of Ricardo’s theory of prices, taking section, I note some points worthy of special particular note of Ricardo’s references to mention. J.-B. Say. Fukuda( 2006) analyzed Princi- First, Japanese studies on Ricardo will ples and An Essay on Profits by distinguish- broaden their research areas to include ing the differences in presuppositions and Ricardo’s contemporaries. Research extends showed that Ricardo’s economic theory to not only Smith and Malthus but also, for 68 経済学史研究 54 巻 2 号

example, Bentham, J. Mill, Torrens, McCul- the theory of money with the theory of val- loch, Thornton, Baring, Barton, Tooke, Sis- ue? How should we think of the relationship mondi, Say, Marcet, and Martineau. Through between economics and politics in Ricardo? investigating and understanding Ricardo’s And so on. Studies on these questions must personal network with his contemporaries, continue, and Ricardo’s texts themselves will these interdisciplinary studies may bring us be read more actively and precisely. The an abundant harvest of learning. Here I must classical texts are the classics because they limit myself to discussing only Kitami can be read and reread repeatedly. The tradi- (2001), Nakamiya( 2004), Izumo( 2006), tional Japanese learning style of cherishing and Hisamatsu( 2009). original archives could help produce effec- Second, we must mention the founding tive contributions to the world’s studies on of the Ricardo Society in Japan. This organi- Ricardo in the near future. zation began in October 2000. Since then, Shigemasa Sato: Onomichi City University regular meetings have been held twice a year and many members, of which there are twen- References ty to thirty, hold a lively discussions and Dome, T. 2004. The Political Economy of Public share information each other. Since 2007, the Finance in Britain 1767-1873. : Ricardo Society has often invited foreign Routledge( English). guests in collaboration with the Japanese So- Ebihara, R. 1974. Kotenha Shihonchikuseki-ron ciety for Post Keynesian Economics; thus, no Hatten to Rodosha-kaikyu [Classical many Japanese members have begun to read Theory of Capital Accumulation and the their papers in English as well as Japanese. Working Classes]. Hoseidaigaku-shuppan- The Ricardo Society will become one of the kyoku. important centers for the internationalization -. 2004. Shihonchikuseki to Shitsugyo, Kyou- kou: Ricardo, Marx, Malthus Kenkyu[ Ac- of Japanese studies on Ricardo. cumulation of Capital, Unemployment and Third, Japanese studies on Ricardo have Crisis]. Hoseidaigaku-shuppankyoku. cultivated many theoretical frontiers and har- Endo, A. 2002. “Ricardo Shin-Kikairon ni okeru vested many theoretical fruits in the fields of, Ichi-mondai” [Ricardo’s Revised Theory for example, value and distribution, wages, about Machinery]. Kyushukyoritsudaigaku profits and rent, accumulation of capital, ma- Kiyo( Kyushukyoritsu-U.) 90. chinery, foreign trade, finance and politics, Fujitsuka, T. 1973. Keizaigaku Club[ Political the poor rate, and currency. Here again I Economy Club]. Minerva-shobo. must confine myself to referring only to Fukamachi, I. 1959. “Ricardo no Kin-yu-sei- saku-ron ni tsuite On Ricardo s Theory of Endo( 2002), Masunaga( 2004), Shiozawa ”[ ’ Monetary Policy]. Banking No. 138. (2007), Moroizumi( 2008), and Nagamine Fukuda, S. 2006. Ricardo no Keizai Riron (2008). [Ricardo’s Economic Theories]. Nihonkei- However, we know that there remain zaihyoron-sha. many questions to be answered in Principles. -. 2008. “Nihon no Shoki Ricardo Kenkyu” For example, why Ricardo allocate so many [Japanese Studies on Early Ricardo]. Hiro- chapters to taxation? How can we connect sakidaigaku-jinbunshakai-ronso (Hiro- Sato: Japanese Studies on Ricardo after World War II 69

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