Literature during this time was written during the largely peaceful Tokugawa Period (commonly referred to as the Edo Period). Due in large part to the rise of the working and middle classes in the new capital of Edo (modern Tokyo), forms of popular drama developed which would later evolve into kabuki. The jōruri and kabuki dramatist Chikamatsu Monzaemon (1653–1725) became popular at the end of the 17th century, and he is also known as Japan's Shakespeare.
Many different genres of literature made their début during the Edo Period, helped by a rising literacy rate among the growing population of townspeople, as well as the development of lending libraries. Ihara Saikaku (1642–1693) might be said to have given birth to the modern consciousness of the novel in Japan, mixing vernacular dialogue into his humorous and cautionary tales of the pleasure quarters, the so-called Ukiyozōshi "floating world" genre. Ihara's Life of an Amorous Man is considered the first work in this genre. Although Ihara's works were not regarded as high literature at the time because it had been aimed towards and popularized by the Chōnin, they became popular and were key to the development and spread of ukiyozōshi.
Matsuo Bashō (1644–1694) is recognized as the greatest master of haiku (then called hokku) His poems were influenced by his firsthand experience of the world around him, often encapsulating the feeling of a scene in a few simple elements. He made his life's work the transformation of haikai into a literary genre. For Bashō, haikai involved a combination of comic playfulness and spiritual depth, ascetic practice and involvement in human society. In particular Bashō wrote Oku no Hosomichi a major work in the form of a travel diary and considered "one of the major texts of classical Japanese literature."[17]