This note reexamines the recent evidence by Hoffman, Rasche and Tieslau (1995) that cointegrating M1 demand relationships are stable in postwar industrial countries particularly when the restriction of a unit income elasticity is imposed. We apply Gregory and Hansen's (1996) residual-based test...

Since the beginning of the 1990s, Japanese inflation has been relatively stable with slight declines, while output has remained volatile with a prolonged stagnation. This paper attempts to explore possible explanations for these macroeconomic facts based on the aggregate demand and supply...

The existing discussions about the origins of the Asian crisis can be summarized into two broad views: the "economic fundamentals" view and the "financial panic" view. This paper attempts to distinguish between these two views empirically by testing external solvency and examining intertemporal...

This article interprets time series facts regarding the sources of business fluctuations in Japan and attempts to uncover possible characteristics of the effects of monetary policy over the last two decades. It argues that given the institutional features of the Bank of Japan's operating...

Japan's money supply and its role in monetary policy have drawn considerable attention especially since the Bank of Japan adopted its "quantitative easing" scheme in March 2001. This paper focuses on the role of money supply as an information variable and reexamines the empirical relationship...

This paper reexamines evidence on M2 demand cointegration in the postwar United States. Equilibrium relations between M2 and various sets of its determinants are analyzed using quarterly observations from 1959:1 to 1988:4, 1990:4, and 1993:4 based on three different testing methods. For earlier...