VEBLEN THEORY OF INSTITUTIONAL CHANGE - AN EXPLANATION OF THE DEREGULATION OF JAPANESE FINANCIAL-MARKETS

In his 1915 essay ''The Opportunity of Japan,'' Thorstein Veblen theor ized that traditional Japanese institutions would undergo evolutionary change as Japan exploited borrowed industrial technology and became i ntegrated into the global business enterprise system. This article exp lains the recent liberalization of Japanese financial markets which fo llowed Japan's rise to economic prominence within the context of Veble n's theory of institutional development of the enterprise system. The Japanese process of financial deregulation is reviewed, Veblen's predi ctions for Japan are presented and an explanation provided for the lib eralization of Japanese financial markets.