As a famous Marxist economist，Arisawa Hiromi had built a solid foundation of economic thought relating to the controlled economy before the WWII，and was reflected in the research results of Japan’s think-tanks and even economic policies. In the period of economic recovery in the early postwar period，Arisawa proposed the famous “inclined mode of production”，recommending that the limited resources should be given priority to coal，iron and steel and other basic industries. The policy recommendation was adopted by the government and had a positive effect on Japan’s economy. It was soon replaced by “the Dodge Plan” led by the US government，however. The model of government-controlled economy had been maintained in the form of “administrative guidance” providing a policy basis for Japan’s rapid economic growth. Since Japan having become the world second largest economy，the negative effect of that mode gradually emerged and played a major role in the collapse of Japan’s bubble economy.