IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Monetary Regimes and Inflationary Expectations

  • Shumpei Takemori
  • Lioudmila Savtchenko
Registered author(s):

    The statistical relationship between price levels and interest rates, known as the "Gibson paradox," is, according to Keynes, "the most established fact in monetary economics." Since Barsky and Summers (1988), the Gibson Paradox has been interpreted as a phenomenon associated primarily with the gold standard. The test of the Gibson paradox using Japanese historical data provides a good opportunity to determine whether this claim is true because the monetary system during the Meiji era went through three phases: fiat money, silver standard, and gold standard. Our empirical findings show that this phenomenon tends to hold true in Japan only during the period of fiat money (1877-85) and is not observed under the precious metal standards, contradicting the claim made by Barsky and Summers (1988). The study also examines whether the adaptive expectation hypothesis proposed by Irving Fisher (1930) holds true and reveals the mechanism that governs the behavior of interest rates.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by M.E. Sharpe, Inc. in its journal Japanese Economy.

    Volume (Year): 35 (2008)
    Issue (Month): 4 (December)
    Pages: 3-21

    in new window

    Handle: RePEc:mes:jpneco:v:35:y:2008:i:4:p:3-21
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:mes:jpneco:v:35:y:2008:i:4:p:3-21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.