The Japanese Way: Continuity through change

There is a large corpus of theoretical and empirical literature exploring the current problems of Japan. These works often focus on a portion of the economy — the regulatory system, the banking crisis, corporate governance at large firms, etc. — by comparing it to models drawn from Western experience. The comparison implies that change is the remedy, and change is urgent. However, “Out with the old, in with the new” is a slogan that does not necessarily fit the Japanese context, in which a remarkable record of continuity was achieved through change.