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This book proposes a new approach to macroeconomics which draws upon the experience of the Japanese economy. the approach is similar to the Old Keynesian view: it rejects the Walrasian approach, and singles out real demand as the fundamental determinant of output in the economy as a whole. However, by maintaining that real demand constrains are important not only in the short-run, but in the long-run, it goes beyond what is normally understood as the Keynesian approach. This book is also very different from the New Keynesian Economics. In particular, it regards the rigidity of nominal wages/prices as of secondary importance. To show that a new approach is called for, Professor Yoshikawa provides both theoretical exercises and numerous empirical analyses of the Japanese economy. His arguments are extensivley illustrated by almost 200 figures and tables of data.