Faculty Fellow

Professor Emeritus, University of Tokyo
Member, Council on Wages and Employment, Cabinet Office, Japan

Activities at RIETI


Macroeconomics, Japanese Economy

Research Projects


1978 Ph.D. Yale University
1974 B.A. University of Tokyo


2017 - Honorary President, Policy Research Institiute, Ministry of Finance
2016 - 2022 Professor, Faculty of Economics, Rissho University
2013 - present Member, Council on Wages and Employment, Cabinet Office, Japan
2011 Member, Council on the Tax and the Social Security Reform, Cabinet Office, Japan
2010 - 2017 Chairman, Fiscal System Council, Ministry of Finance
2009 - 2011 Dean, Faculty of Economics, University of Tokyo
2008 - 2009 Member, Council on Economic and Fiscal Policy, Cabinet Office, Japan
2008 Chairman, Council on the Social Security Reform, Cabinet Office, Japan
2001 - 2006 Member, Council on Economic and Fiscal Policy, Cabinet Office, Japan
1995 Visiting Scholar, Department of Economics, University of Sienna
1993 - 2016 Professor, Faculty of Economics, University of Tokyo
1991 Nissan Fellow, St. Antony's College, Oxford University
1988 - 1993 Associate Professor, Faculty of Economics, University of Tokyo
1982 - 1988 Associate Professor, Institute of Social and Economic Research, Osaka University
1978 - 1982 Assistant Professor, State University of New York, Albany

Selected Publications and Papers

Books and Monographs

  • Reconstruction of Macroeconomics ―― Methods of Statistical Physics, and Keynes’ Principle of Effective Demand, Springer, 2022.
  • Complexity, Heterogeneity, and the Methods of Statistical Physics in Economics, Springer, 2020 (with Hideaki Aoyama and Yuji Aruka).
  • Macro-Econophysics, Cambridge University Press, 2017 (with Hideaki Aoyama, Yoshi Fujiwara, Yuichi Ikeda, Hiroshi Iyetomi, and Wataru Souma).
  • Deflation (in Japanese), Tokyo: Nikkei publishing Co., 2013.
  • Japan's Lost Decade, Revised and Expanded Edition, I-House Press, 2008.
  • Reconstructing Macroeconomics: A Perspective from Statistical Physics and CombinatorialStochastic Processes, Cambridge University Press, 2007 (with Masanao Aoki).
  • Macroeconomics and the Japanese Economy, Oxford: Oxford University Press, 1995.


  • "Micro-foundations for macroeconomics: New set-up based on statistical physics," The European Physical Journal Special Topics 225, 2016, pp3337-3344, (DOI) 10.1140/epjst/e2016-60163-8.
  • "Deflation/Inflation Dynamics: Analysis based on Macro Prices," CIRJE Discussion Papers CIRJE-F-959, February 2015 (with Hideaki Aoyama, Yoshi Fujiwara, Hiroshi Iyetomi).
  • "Stochastic macro-equilibrium: a microfoundation for the Keynesian economics," Journal of Economic Interaction and Coordination, Vol.10, 1, 2015, pp31-55, (DOI) 10.1007/s11403-014-0142-4.
  • "Equilibrium distribution of labor productivity: a theoretical model," Journal of Economic Interaction and Coordination, November 2013, (DOI) 10.1007/s11403-013-0118-9 (with Hideaki Aoyama and Hiroshi Iyetomi).
  • "Non-Self-Averaging in Macroeconomic Models: A Criticism of Modern Micro-founded Macroeconomics," Journal of Economic Interaction and Coordination, Vol.7, 1, 2012, pp1-22 (with Masanao Aoki).
  • "What causes business cycles? Analysis of the Japanese industrial production data," Journal of The Japanese and International Economies, Vol.25 2011, pp246-272 (with Hiroshi Iyetomi, Yasuhiro Nakayama, Hideaki Aoyama, Yoshi Fujiwara, Yuishi Ikeda and Wataru Souma).
  • "Productivity dispersion: facts, theory, and implications," Journal of Economic Interaction and Coordination, Vol.5, No.1, 2010. (with Hideaki Aoyama, Hiroshi Iyetomi and Yoshi Fujiwara).
  • "The General Theory: Toward the Concept of Stochastic Macro-Equilibrium," in B. Bateman, T. Hirai, and M. Marcuzzo eds. The Return to Keynes, p.148-165, Cambridge, Massachusetts and London: The Belknap Press of Harvard University Press, 2010.
  • "Labour Productivity Superstatistics," Progress of Theoretical Physics Supplement, No.179, 2009. (with Hideaki Aoyama, Hiroshi Iyetomi and Yoshi Fujiwara).
  • "Japan's Lost Decade: What Have We Learned and Where Are We Heading?," Asian Economic Policy Review, 2, p.186-203, 2007.
  • "Stock Prices and the Real Economy: Power Law versus Exponential Distributions," Journal of Economic Interaction and Coordination, Vol., No.1, p.45-73, 2006. (with Masanao Aoki).
  • "The Long Stagnation and Monetary Policy in Japan—— A Theoretical Explanation," in Monetary Policy and Unemployment —— The US, Euro-area, and Japan, Willi Semmler, p.133-165, London and New York: Routledge, 2005. (with Masanao Aoki and Toshihiro Shimizu).
  • "Uncertainty, Policy Ineffectiveness, and Long Stagnation of the Macroeconomy," Japan and the World Economy, 2005.
  • "The Role of Demand in Macroeconomics," Japanese Economic Review Vol. 54, No. 1, p.1-27, 2003.
  • "Demand Creation/Saturation and Economic Growth," Journal of Economic Behavior and Organization, 48(2), 2002, p.127-154 (with M. Aoki).
  • "Growth and Fluctuations: the Post-war Japanese Experience," in Lionello F. Punzo ed., Cycles, Growth and Structural Change, London:Routledge, 2001.
  • "La Politique Économique Face À La Stagnation De L'Économie" Economie Internationale, 84-4, p.13-34, 2000.
  • "Potential Growth Rate of the Japanese Economy" (in Japanese) Tokyo: Keizai Kenkyu, 50(3), p.228-237, July, 1999.
  • "Causes of the Long Stagnation of Japan during the 1990's: Financial or Real?" Journal of the Japanese and International Economies, 13, p.118-200, 1999 (with T. Motonishi).
  • "The Great Depression in Japan: Why Was It So Short?" in Trevor Dick ed., Business Cycles since 1820: New International Perspectives from Historical Evidence, Cheltenham: Edward Elgar, 1998 (with T. Iwami and T. Okazaki).
  • "High Economic Growth and Its End in Japan: An Explanation by a Model of Demand-led Growth," in M. Okabe ed., The Structure of the Japanese Economy, London: Macmillan, 1995.
  • "Monetary Policy and the Real Economy in Japan," in Kenneth Singleton ed., Japanese Monetary Policy, Chicago University Press, 1992.
  • "On the Equilibrium Yen Dollar Rate," American Economic Review, 80(3), June 1990.
  • "An Analysis of Female Labor Supply, Housing Demand and the Saving Rate in Japan," European Economic Review, 33, 1989 (with F. Ohtake).
  • "Postwar Business Cycles in Japan: A Quest for the Right Explanation," Journal of Japanese and International Economies, 1(4), December 1987 (with F. Ohtake).
  • "Financial Volatility and the q Theory of Investment," Economica, 53(209), February 1986 (with K. Ueda).
  • "Demand-Supply Constraints and Inventory Stock in Macroeconomic Analysis," Economic Studies Quarterly, 35(3), December 1984.
  • "On the Firms Short-run Quantity Adjustment: "q" Theory of Goods in Process," Economica, 49(195), August 1982.
  • "Alternative Monetary Policies and Stability in a Stochastic Keynesian Model," International Economic Review, 22(3), October 1981.
  • "On the ‘q’ Theory of Investment," American Economic Review, 70(4), September 1980.


Prizes and Awards

The Medal with Purple Ribbon, 2010
The UFJ Bank Monograph Award, 2002 (New York University)
Yomiuri-Yoshino Sakuzo Award, 2000 (Yomiuri Shimbun)
Economist Award, 1993 (Mainichi Shimbun)
Suntory Award, 1984
Nikkei Economic Book Award, 1984 (Nikkei Shimbun)


Japanese Economic Association, President (2002)
American Economic Association