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Corporate Affiliate Visiting Fellow
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Ryo Masuda is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012-13.  Masuda has more than six years of experience in media markets working for Sumitomo Corporation, one of Japan's major trading and investment conglomerates.  Most recently, Masuda worked for Japan's largest CATV operator, one of Sumitomo Corporation's affiliated companies, where he was responsible for business development.  Masuda graduated from Hitotsubashi University with a bachelor's degree in commercial science.

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Corporate Affiliate Visiting Fellow
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Mitsunori Fukuda is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012-13.  He has held positions at the Ministry of Economy, Trade and Industry of Japan (METI) for about 10 years, where he has been in charge of policy making.  His latest position at METI was as deputy director for the Nuclear and Industrial Safety Agency.  He obtained his bachelor's and master's degrees in engineering from Kyoto University.

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Recent academic papers have shown that the Japanese sovereign debt situation is not sustainable. The puzzle is that the bond rate has remained low and stable. Some suggest that the low yield can be explained by domestic residents’ willingness to hold Japanese government bonds (JGBs) despite its low return, and that as long as domestic residents remain home-biased, the JGBs are sustainable. About 95% of JGBs are currently owned by domestic residents. This paper argues that even with such dominance of domestic investors, if the amount of government debt breaches the ceiling imposed by the domestic private sector financial assets, the JGB rates can rapidly rise and the Japanese government can face difficulty rolling over the existing debt. A simulation is conducted on future paths of household saving and fiscal situations to show that the ceiling would be breached in the next 10 years or so without a drastic fiscal consolidation. This paper also shows that the government debt can be kept under the ceiling with sufficiently large tax increases. The JGB yields can rise even before the ceiling is hit, if the expectation of such drastic fiscal consolidation disappears. This paper points out several possible triggers for such a change in expectation. However, downgrading of JGBs by credit rating agencies is not likely to be a trigger, since past downgrades have not produced any change in the JGB yield. If and when the JGB rates rapidly rise, the Japanese financial institutions that hold a large amount of JGBs will sustain losses and the economy will suffer from fiscal austerity, financial instability, and inflation.

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The National Bureau of Economic Research
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Takeo Hoshi
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Original version published in the 2007–08 Shorenstein APARC Annual Overview

Since 2005, Denise Masumoto has managed Shorenstein APARC’s Corporate Affiliates Visiting Fellows Program. Each summer, Masumoto welcomes a new group of fellows and their families to the Center, and helps them to navigate their new country. She also oversees the program curriculum and connects fellows with Center faculty who share their research interests.

How has the program changed since you took over?

When I started at Shorenstein APARC, the program was well established, and it gets better every year. Today, there is more interaction with our faculty and other scholars, which produces better research. The core research goal remains constant, but the changing composition of each group—more female fellows, varied professional backgrounds, new countries joining the mix—keeps the program exciting and unique.

What is the biggest challenge that visiting fellows face when they enter the program?

Definitely deciding which events to attend! In addition to the classes they audit, and the calendar of seminars and site visits arranged specifically for the visiting fellows, there are numerous events within the Center, at our parent institute FSI, all around the Stanford campus, and into Silicon Valley and the greater San Francisco Bay Area. The fellows’ schedules are busy and filled with great opportunities to learn new things and to network; the biggest decision is how to prioritize. What the visiting fellows put into the program is what they get out of it.

How do the visiting fellows integrate into the Center and the University?

I strongly encourage all the visiting fellows to get out and meet people, in Shorenstein APARC and beyond, and to ask lots of questions. Whether this is done in the classroom, at a seminar or conference, or in front of the coffee pot, meeting people and having conversations are valuable parts of their experience. You never know who you might meet, what you might learn, or where it might lead.

In what ways do the visiting fellows contribute to the Center’s research mission?

Research is a continuous process and one that requires feedback and exchange. Our visiting fellows have the opportunity to interact with and learn from our distinguished faculty. At the same time, the knowledge and practical experience that they bring to the Center provide insight and international perspective.

How do the visiting fellows benefit?

In April 2008, we met with affiliate organizations in Japan so we could better understand their objectives. We learned that the affiliate organizations recognize that the program’s value lies in allowing the visiting fellows to take advantage of Stanford’s resources, to develop their professional skills, to expand their international network, and, crucially, to have their way of thinking completely changed. The visiting fellows return home with a fresh perspective on and renewed enthusiasm for their work.

What happens after the program ends each year?

While they are at Stanford, the visiting fellows develop strong relationships with other members of their class. We want this to continue after they return home. Many of our alumni are now in prominent positions within their organizations.

I am focused on growing the network of alumni by maintaining and improving a comprehensive database, which will make it easy for former fellows to stay in touch with one another and with the Center.

Masumoto returned to Japan this autumn to visit with affiliate organizations, and to reconnect with alumni during a reception that was held in Tokyo on September 10.

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Site visit to Palo Alto Utilities by 2009-10 Visiting Fellows.
Denise Masumoto
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The Asia Health Policy Program (AHPP) of the Walter H. Shorenstein Asia-Pacific Research Center announces the availability of two 2012–13 pre-doctoral research assistantships in health economics research on evidence-based health policy in East Asia. The assistantships support masters or pre-doctoral students with excellent econometrics skills who are interested in microeconomic analysis of recent health policy reforms in Japan or China. Student research assistants (RAs) will receive salary and tuition allowance for up to 10 units (depending on the time commitment) in the Autumn, Winter, and Spring quarters of the 2012–13 academic year.

Two positions are open until filled. One RA would support research by Jay Bhattacharya and Karen Eggleston on hospital payment reforms in Japan; ability to read and write Japanese would be ideal. A second RA position will support research by Karen Eggleston and Kate Bundorf on maternal and child health in China; knowledge of Chinese would be ideal. Both positions require excellent microeconomics and data analysis skills. We seek a student who is able to start on an hourly basis in July or August 2012 and continue with RA-ship support beginning Autumn quarter.

Applicants should send the following materials to the research assistantship coordinator, Lisa Lee:

  • CV
  • Description of research interests, previous RA experience, and relevant skills (one page).
  • Copy of transcripts.
  • One letter of recommendation, sent directly to AHPP.

Deadline for receipt of all materials is July 20, 2012. Please address all materials to:

Lisa Lee
Administrative Associate for AHPP and SEAF

Shorenstein APARC
Stanford University
Encina Hall, Room E301
Stanford, CA 94305-6055

llee888@stanford.edu
(650) 725-2429 (voice)
(650) 723-6530 (fax)

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Arch and column detail in the Stanford University Main Quadrangle.
Linda A. Cicero / Stanford News Service
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A new account of the Fukushima nuclear disaster revisits events as they took place in March 2011. The report, by Kenji E. Kushida, delves into the politics and institutions of Japan’s energy industry and offers recommendations for reforming it with a view of preventing such a disaster from occurring again.
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Water is injected into one of the reactors at the Fukushima nuclear plant, March 20, 2011.
TEPCO; bit.ly/Mc2o1J
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How has Japan responded to China's growing influence in Northeast Asia? Sheila Smith, a senior fellow for Japan studies at the Council on Foreign Relations, spoke about recent tensions and developments in Japan-China relations, including over historical issues. The podcast from the event is now available.
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The East China Sea as seen from the coast of Japan, February 2007. This expanse of water is at times the scene of territorial disputes between China and Japan.
Flickr / Hideyuki Kamon; bit.ly/Ligdpg
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This report discusses desirable policy directions and options in the aftermath of the Great Tohoku Earthquake. It argues that the importance of Japan’s productivity growth has not been invalidated by the disaster, and suggests that Japan should consider restoration and reconstruction from the earthquake as a great opportunity to reposition its policies.

It identifies concrete steps Japan can take to jump start growth in three broad themes: regulatory reforms (reducing the costs of doing business, stopping protection for zombie firms, deregulation especially in non-manufacturing sectors and growth enhancing special zones); opening-up of the Japanese economy (trade liberalization, reduction of agricultural subsidies and new immigration policy); and macroeconomic policy reforms (fiscal consolidation and monetary expansion to end deflation).

 

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National Institute for Research Advancement
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Takeo Hoshi
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This report provides one of the first coherent, readable narratives of the Fukushima nuclear disaster—what happened in the first few days. It is based on new sources available in Japanese and National Diet testimonies, and is an objective overview of events as they unfolded, rather than an ideologically positioned effort of advocacy. The report goes on to analyze the institutional and governance aspects of Japan’s nuclear oversight, highlighting the fundamental problems that surfaced during the disaster that stem from deeper structural issues. The report also draws upon expertise from a conference held at Stanford University in February 2012 to analyze the politics and industry structure of Japan’s electric power sector, making concrete recommendations for reorganizing the power industry and government oversight structure.

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Shorenstein APARC Working Paper Series
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Kenji E. Kushida
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Japanese textbooks, long a subject of controversy, tend to actually present a dry, unpatriotic account of World War Two, says Daniel C. Sneider in a recent Nippon.com article. A comparative understanding of different textbook descriptions of the war, a focus of the Center's Divided Memories project, is one way to move toward lasting reconciliation in East Asia.
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Textbooks offer different accounts of World War Two events.
Flickr / Alberto G.; http://bit.ly/M38C4T
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