Civics - Economy, Public Finance, and International Economy
The three layers
Households, firms, and government circulate money; the 日本銀行 steers it; the government taxes and spends; and exchange rates translate all of it into trade with the world.
Core mechanisms
- 日本銀行 has three roles: 発券銀行, 政府の銀行, 銀行の銀行. Its tools include 公開市場操作 (buying bonds injects funds), the policy rate, and reserve requirements.
- Taxes split into 直接税 (所得税, 法人税, 相続税) and 間接税 (消費税, 酒税). 所得税 is 累進課税, following 応能負担.
- 歳入 comes largely from 租税 and 国債; 公債費 is a growing share of 歳出, alongside 社会保障関係費.
- Trade follows 比較優位 and 国際分業; since 1973 Japan has used a 変動相場制.
Worked example
The rate moves from 1ドル=150円 to 1ドル=120円 - that is 円高, because one dollar now buys fewer yen. An exporter selling a good at a fixed price of $100 used to receive 15,000 yen and now receives 12,000 yen, so export earnings fall. A Japanese importer paying $100 for materials now needs only 12,000 yen, so imports get cheaper. Correct phrasing matters: the value of the yen rose; the dollar fell.
Traps that cost marks
Calling 1ドル=120円 円安 because the number is smaller; classifying 消費税 as a direct tax; listing the 勤労の権利 as part of 労働三権; forgetting that 国債 is 歳入 (borrowing) rather than revenue from taxes.