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.

It recommended:
 * 1) Balancing the national budget to reduce inflation
 * 2) More efficient tax collection
 * 3) Dissolving the Reconstruction Finance Bank because of its uneconomical loans
 * 4) Decreasing the scope of government intervention
 * 5) 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.