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Katsuhito IWAI


Katsuhito IWAI, economist in the field of General Economic Theory; Macroeconomic Theory; Economics of Technological Change. Grand Prix Nikkei Economics Books Award, 1982.


IWAI, Katsuhito was born in 1947 in Tokyo, Japan.


BE University Tokyo, 1969. Doctor of Philosophy Massachusetts Institute of Technology, Cambridge, Mass., USA, 1972.


Assistant Professor of Economics, Senior Research Association, Cowles Foundation Research Economics, Yale University, 1973-1979, 1979-1981. Association Professor of Economics, University Tokyo, Tokyo, Japan, since 1981.


  • Grand Prix Nikkei Economics Books Award, 1982.


Developed a theory of disequilibrium dynamics which integrates a Wicksellian model of the cumulative process and the Keynesian principle of effective demand. Its major theses are that (1) decentralised priceformation process in the monetary economy has an intrinsically unstable character. (2) inflexibility rather than flexibility of money wages is what stabilises the monetary economy.

And (3) Keynesian features will never disappear from the economy even in the long run. Also developed a Schumpeterian theory which analyses the evolution of industry structure as a dynamic outcome of interactions among innovation, imitation and capacity growth of individual firms.