I n adopting the view that " relatively few of our readers are interested in the history of economic thought anymore, " 1 the editors of one journal have allowed criticisms of the work of Friedrich Hayek to remain unanswered. That situation is now redressed, by courtesy of the editors of this journal. Three significant assertions were made; namely, that Hayek (a) switched his focus from monetar...

We characterize monetary and fiscal policy rules to implement optimal responses to a substantial decline in the natural rate of interest, and compare them with policy decisions made by the Japanese central bank and government in 1999—2004. First, we find that the Bank of Japan’s policy commitment to continuing monetary easing until some prespecified conditions are satisfied lacks history depend...

OBJECTIVE Little is known about the relationship of dietary cost to health status. The present cross-sectional study examined the association between the monetary cost of dietary energy (Japanese yen/4184 kJ) and several metabolic risk factors. DESIGN Monetary cost of dietary energy was estimated based on dietary intake assessed by a self-administered diet history questionnaire and retail foo...

Now, as often in the past, there are complaints from all quarters about the lack of coordination between monetary and fiscal policy. Indeed, the feeling that monetary and fiscal policies are acting at cross purposes is quite prevalent. This attitude, I think, reflects dissatisfaction with the current mix of expansionary fiscal policy and contractionary monetary policy, which pushes aggregate de...

To evaluate the Greenspan era, we nevertheless need to address three questions: Is his success due to talent or just luck? Does he have a system of monetary policy or is he himself the system? What will be his legacy? Greenspan was certainly lucky, but he was also clairvoyant. Above all, he has developed a profoundly original monetary policy. His confidence strategy is clearly opposed to the cr...

Stimuli associated with monetary reward can become powerful cues that effectively capture visual attention. We examined whether such value-driven attentional capture can be induced with monetary feedback in the absence of an expected cash payout. To this end, we implemented images of U.S. dollar bills as reward feedback. Participants knew in advance that they would not receive any money based o...

This analysis examines the effectiveness of monetary policy as a contra-cyclical instrument. The survey covers three basic fields of monetary policy. The first part investigates to what extent expansion of the money supply effectively results in the alleged growth effect. The second section studies the effect of monetary expansion on money velocity. The third part investigates the outcome of in...

Article history: Received 19 June 2012 Received in revised form 31 May 2013 Accepted 4 June 2013 Available online 13 June 2013 We use firm-level data to reexamine the issue of possibly different impacts of “informative” and “uninformative” FOMC statements on stock returns in the period from 1999 to 2007. Our paper finds that stock returns respond significantly to surprise monetary shocks based ...