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 Capital flows in Japan Capital began to flow in and out of Japan following the Meiji Restoration of 1868, but policy restricted loans from overseas. In the aftermath of World War II, Japan was a debtor nation until the mid-1960s. Subsequently, capital controls were progressively removed, in part as a result of agreements with the United States. This process led to rapid expansion of capital flows during the 1970s and especially the 1980s, when Japan became a creditor nation and the largest net investor in the world. This credit position resulted both from foreign direct investment by Japanese corporations, and