- Dodge Line
The Dodge Line was a financial and monetary contraction policy drafted by Joseph Dodge for Japan to gain economic independence after World War II. It was announced on March 7, 1949.
- Balancing the national budget to reduce inflation
- More efficient tax collection
- Dissolving the Reconstruction Finance Bank because of its uneconomical loans
- Decreasing the scope of government intervention
- Fixing the exchange rate to 360 yen to one US dollar to keep Japanese export prices low
Dodge had the Reconstruction finance bank, which was a major conductor of inflation-financed subsidies, shut down. He took important steps to restore Japan's foreign trade to private hands. The terms of all transactions were determined at the unchanging official exchange rate of 1$ = 360 yen.
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