In the last one hundred years of Japan’s history there has been no other inflation than that of 1973–74, the cause of which was so purely monetary in its nature. It is a tragic testimony of the importance of monetary policy. Moreover, it seems that the failure of monetary policy has not really been brought about by simple lack of understanding on the part of the monetary authority but greatly promoted by its insistence on the wrong kind of monetary theory.
KeywordsInterest Rate Monetary Policy Money Supply Relative Prex Bidding Price
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