IDEAS home Printed from
   My bibliography  Save this article

Thinking about a hairy situation


  • Kevin Capehart


To satirize the theory that increases in the quantity of money cause increases in the price level, Richard Kahn theorized that increases in the quantity of hairpins cause increases in the percentage of women with long hair. If Kahn's satirical theory is taken seriously, then the situation in Japan in the 1990s requires some thought. In Japan in the 1990s, the percentage of long-haired women did not increase, despite an increase in the quantity of hairpins. This article considers such a situation by following Paul Krugman's thinking about a liquidity trap. The failure of an increase in the quantity of hairpins to increase the percentage of long-haired women is thought of as a failure of policymakers to credibly commit to a permanent increase in the quantity of hairpins.

Suggested Citation

  • Kevin Capehart, 2014. "Thinking about a hairy situation," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 36(4), pages 635-652.
  • Handle: RePEc:mes:postke:v:36:y:2014:i:4:p:635-652
    DOI: 10.2753/PKE0160-3477360403

    Download full text from publisher

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

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:36:y:2014:i:4:p:635-652. 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 Longhurst). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.