||As widely known the Japanese Economy is one of the most interesting phenomenon in the economic realm. Based on the modern literature in the field and the relevant empirical data the work provides comprehensive analysis of Japan economic system and considers three main stages of evolution since 1868 untill the new millenium. The process of evolution of the modern economic system of Japan is analyzed and the basic features of it are presented. Discussion captures the causes of success or failures of the Japan economic system. The work would be interesting for the students of the Japanese economy.