The IMF and Japan: Liberalization of Foreign Exchange and Pursuit of High Growth

Abstract

Japan joined the IMF in August 1952, 8 years after the Bretton Woods Conference. Germany joined the IMF in that same month. About 12 years later, in April 1964, Japan’s status shifted to that of an IMF Article VIII nation. The leading Western European member states already had acceded to Article VIII status 3 years earlier. While under Article XIV status, Japan had borrowed funds from the IMF in 1953 and 1957 and concluded standby line of credit agreements in 1962 and 1964, but since acceding to Article VIII status it has not borrowed from the IMF once. Japan’s shift to Article VIII status was carried out when the time was fully ripe.