LDP bubble-era governance — Takeshita to Miyazawa (Japan)

Doctrine — stated goals and content

LDP bubble-era governance — reactive-monetary-easing LDP doctrine that absorbed the Plaza Accord yen shock through sustained BoJ easing then lurched into abrupt tightening. Economic school: convoy-capitalism developmentalism with post-Plaza monetary accommodation; consumption tax introduction as fiscal-structure modernisation. Dated policies: Consumption tax 3% introduction 1 Apr 1989 (Takeshita); BoJ discount rate cut to 2.5% Feb 1987 sustained through May 1989; Mieno tightening Dec 1989 to 6.0% by Aug 1990 puncturing asset bubble; Large-Scale Retail Store Law amendments 1990 under SII (Structural Impediments Initiative) with US; Political Reform Act 1993 (Jan 1994 Hosokawa passage actually) — reform pressure from 1988 Recruit scandal onward; Gulf War ¥13bn contribution 1991. Left-right: centre-right LDP mainstream, market-liberalising on distribution and trade, statist on land-tax and keiretsu protection. Popularity: Takeshita approval collapsed Recruit scandal 1988-1989 (<10%); Uno Jul 1989 Upper House election LDP lost majority first time (27.3%); Kaifu recovered on Gulf crisis; Miyazawa Feb 1993 Sagawa Kyubin scandal + LDP split Jun 1993 Jul 1993 general election LDP 36.6% / 223 seats — lost majority, ended 38-year LDP rule. Coherence: low — reform signals (consumption tax, SII concessions) undermined by Recruit/Sagawa scandals and inconsistent monetary policy that inflated then burst the Nikkei/land bubble.