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Financial Deregulation and the Privatization of Housing Finance Policy in Japan : An Argument against abolishing the Government Housing Loan Corporation
The annals of the Economic Society, Wakayama University
In postwar Japan, the public policy to promote housing provision was served mainly by the three institutions established in the 1950s: the Government Housing Loan Corporation (GHLC), the municipality-managed Public Housing System and the Japan Housing Corporation. However, from the mid-1990s onward, remarkable changes in housing policies began to appear. The changes include a drastic restructuring of the existing system and institutions. This paper, focusing on the government' s plan to abolish GHLC, provides a critique of the restructuring in Japan' s housing finance policy. First, we discuss the background against which the changes in housing finance policy are concerned: financial deregulation and bad loan problems. Secondly, we describe the government' s plan to abolish GHLC, and thirdly, examine this plan' s actual implications and possible consequences. Lastly, we raise an alternative perspective for desirable reforms of housing finance policy.
Departmental Bulletin Paper