Banking on Stability

Japan and the Cross-Pacific Dynamics of International Financial Crisis Management
Saori N. Katada
An exploration of Japanese involvement in the resolution of international financial crises


Saori N. Katada examines international financial stability in the aftermath of financial crises—and how such stability is maintained through collective action among major financial powers across the Pacific, the United States, and Japan. She explores the important role that financial support by the Japanese government played in solving the Latin American debt crisis in the 1980s, as well as its lack of support for the Mexican rescue in 1994–95 and its inconsistency during the recent Asian financial crisis.

Banking on Stability looks at Japan's willingness to cooperate financially with the United States—its most important trade partner—in cases where such compliance yields an improvement in relations. Katada argues that the Japanese government carefully weighs the benefits arising in international and domestic realms when taking on the role of collective crisis manager and concludes that Japan is no exception in having private gain as a central motivation during international financial crises.

Saori Katada is Assistant Professor, School of International Relations, University of Southern California.

Praise / Awards

  • "In an age of advancing financial globalization, what could be more timely than a careful study of the factors conditioning international leadership in the management of financial crises? Focusing on the role of Japan as a major but nonhegemonic power, Saori Katada skillfully weaves together structural and domestic explanations for variations in the commitments of key governments to effective collective action. The book is must reading for students of both international political economy and Japanese public policy."
    —Benjamin Jerry Cohen, University of California, Santa Barbara
  • "In this excellent and data-rich analysis, Katada explores the complex interplay between the U.S. and Japanese governments and their private sector financial institutions as they sought to manage several important Pacific Basin crises. In demonstrating the complexity of such collective actions, the book adds a vital new dimension to our understanding of both finance and U.S.-Japan relations. It is must reading for anyone interested in either topic."
    —T. J. Pempel, University of Washington
  • "Japan is a crucial international actor, but its approach to foreign policy is hard for outsiders to understand. Fortunately, Saori Katada provides helpful insights through her examination of Japan's role in three recent financial crises. Her book is highly recommended."
    —Barbara Stallings, Economic Commission for Latin America and the Caribbean
  • "[A] solid and well-crafted work. . . . In sum, Banking on Stability is a daring attempt to shed light on the political dynamics of international financial crisis management through a quantitative and comparative analysis of J Japan's role over the last few decades."
    —Yves Tiberghien, Univ of British Columbia, Journal of East Asian Studies, August 2002
  • "With a happy mix of case studies and regression analysis, Bernhard proceeds to tie together all the various puzzles and patterns as he provides empirical support for his hypothesis. Banking on Reform is comparative politics in action and at its best."
    Perspectives on Politics
  • "Katada offers deep political and economic insights into Japan's crisis management role as a provider of official assistance to the region, backing up the hypotheses with well-thought quantitative and qualitative approaches. . . . Katada's argument that Japan's official assistance is one of the main engines for managing crises in the world today is a convincing one, and this political scientist should be commended for tackling important political and economic issues that many economists tend to ignore."
    —Shirai Sayuri, Keio University & Asian Development Bank Inst, Social Science Japan Journal, 6:1 (2003)
  • Winner: Masayoshi Ohira Memorial Foundation's 2002 Masayoshi Ohira Memorial Prize

Product Details

  • 6 x 9.
  • 328pp.
  • 23 drawings, 20 tables.
Available for sale worldwide

  • Hardcover
  • 2001
  • Available
  • 978-0-472-11211-1

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  • $94.95 U.S.