Thinking about a hairy situation
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.
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.
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.
Volume (Year): 36 (2014)
Issue (Month): 4 (July)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348|
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 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.