Capital of Japan Capital of Japan The current capital of Japan is Tokyo. In the course of history, the national capital has been in many locations other than Tokyo. Traditionally, the home of the Emperor is considered the capital. From 794 through 1868, the Emperor lived in Heian-kyō, modern-day Kyoto. After 1868, the seat of the Government of Japan and the location of the Emperor's home was moved to Tokyo. In 1941, the Ministry of Education published the . While no laws have designated Tokyo as the Japanese capital, many laws have defined a that incorporates Tokyo. Article 2 of the of 1956
Capital flows in Japan tight controls over both inflow and outflow of capital. As part of these controls, for example, government severely restricted foreign direct investment in Japan, but it encouraged licensing agreements with foreign firms to obtain access to their technology. As Japan's current account position strengthened in the 1960s, however, the nation came under increasing pressure to liberalise its tight controls. When Japan became a member of the OECD in 1966, it agreed to liberalise its capital markets. This process began in 1967 and continues. Decontrol of international capital flows was aided in 1980, when the new Foreign Exchange and Foreign Control