RICHARD A. WERNER is Professor of International Banking at the University of Southampton, UK. Previously, he was Reader at Southampton and Assistant Professor of Economics at Sophia University in Tokyo, Japan. He has spent over a decade in Asia, including at the Bank of Japan, the Japanese Ministry of Finance and the Asian Development Bank, and as Chief Economist of Jardine Fleming Securities (Asia) Ltd and asset allocator of a major pension fund. He is much quoted in the media and has published widely on financial markets and monetary economics. In 2003, he was selected as Global Leader for Tomorrow by the World Economic Forum in Davos.

Provides empirical tests of the new paradigm and compares its performance with that of the traditional framework

Suggests solutions to the puzzles surrounding Japan's macroeconomic performance

PART I: INTRODUCTION Prologue: Searching for a New Kind of Economics Japanese economic performance during the 1990s PART II: ENIGMAS: CHALLENGES TO THE TRADITIONAL PARADIGM The Enigma of the Ineffectiveness of Fiscal Policy The Enigma of the Ineffectiveness of Interest Rate Policy The Enigma of Japan's Long Recession The Enigma of the Ineffectiveness of Structural Policy The Enigma of Economic Growth The Enigma of the Velocity Decline The Enigma of Japanese Asset Prices The Enigma of Japanese Capital Flows in the 1980s The Enigma of Japanese Bank Lending The Enigma of Banking and its Recurring Crises PART III: EXPLANATIONS: APPLYING THE NEW PARADIGM Solving the Enigma of Banking and Money Credit, Money and the Economy Explaining the Velocity Decline The Determinants of Growth The Cause of Asset Price Bubbles and Banking Crises The Determinants of Japanese Capital Flows in the 1980s Why Fiscal Policy Could Not Work Monetary Policy in the 1990s and How to Create a Recovery Monetary Policy in the 1980s: How Bank Credit was Determined PART IV: THE GOAL OF MACROECONOMIC POLICY Banking Reform The Goal of Fiscal, Structural and Monetary Policy A New Kind of Economics A New Vision of Macroeconomic Policy