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This paper focuses on the differences between the Austrian School's (Au) and the Monetarist's (Mt) position on Monetary theory. It will be shown that Au have a complete micro outlook that is not in the quantity theory tradition. Au reject central banking and coordinated monetary policy in favor of a system of free banking in which there is no government money. To Au, central banking, with its monopoly of government issued currency, not only allows commercial banks to expand credit beyond prudent limits, but also is responsible for the artificial lowering of market interest rates, followed by abnormally high investment demand, causing more volatile business cycles. In contrast, Mt do have a macro outlook that is in the quantity theory tradition. They believe in central banking, but want to limit discretionary monetary policy by using a growth rule. They focus on the aggregate price level and believe in the long run neutrality of money.

Outlines the characteristics of Japanese keiretsu (vertically integrated firms interlinked through industrial groups) and reviews the history of financial keiretsu and associated research. Compares the performance of Japanese and US banks 1989‐2000; and examines Japanese bank profit inefficiency by developing a mathematical model and applying it to 1992‐1999 bank data. Shows a “zig‐zag” pattern of profitability change over the period and concludes that the Japanese banking industry is “barely holding its own in profitability”. Points out the particular importance of this to the real economy in Japan and briefly considers the implications for government policy.

Explores critically the economic thought of Norbert Wiener with special reference to automatization, of which he was the father and philosopher. Considers the concept and theory in economic science and Wiener’s economics as an axiological science. Examines long‐time and short‐time (contest‐free) economic analysis as discussed by Wiener. Further considerations include the analysis of contest and Wiener’s militarology. Automatization is given special reference and Wiener’s analysis is presented and the humane resolution of the problem discussed. Wienierian ideas are further examined and related to the human condition in a final section: The mandate of heaven.

The aim of this paper is to show that there is need for revitalization of the normative branch of political economy. The first part of this paper will deal with some methodological reservations against a participation of economists in a rational discussion of normative issues. The second and third parts will outline the approaches and problems of two unconventional schools of thought in present‐day economics which make attempts to strive for a reconciliation of positive and normative economics.

Mainstream economics has long prided itself to be an empirical “science”, at least in aspiration if not yet in practice. Yet, some of the most elementary, commonplace premises of the discipline are flatly contradicted by the empirical findings of cultural anthropology. Karl Polanyi made this point:

The existence of a stable relation between the demand for real cash balances and some few variables relating it to real economic activity is one of the cornerstones of the monetarist approach. Such a relation permits us not only to analyze the impact of monetary change on economic activity but, since it is stable, it also has important predictive content. A better insight is then possible on the analysis of the effects of monetary policy. On this basis, it has been shown that money really matters and that the money supply is, with regard to economic stability, a powerful but also a dangerous weapon when heedlessly used by governments.

Marxism‐Leninism has played an instrumental role in the achievement and consolidation of a hitherto unparalleled concentration of power by the Communist Party of the Soviet Union. The key aspects of this ideology are: (1) the concept of a Vanguard Party led by professional revolutionaries which possesses the true Marxist class consciousness unattainable by the workers themselves; and (2) Lenin′s distinction between strategy and tactics. While the ultimate strategic goal is the worldwide overthrow of capitalism, the tactical steps by which this goal is to be achieved must continuously be adapted to the prevailing requirements of time, place and circumstances. There is no indication, so far, that perestroika represents the abandonment of the strategic goal of world revolution; rather, it is one more tactical response to the newest and most severe Soviet crisis. Like past “reforms”, it is aimed at saving the power of the Communist Party and the new class it has created.

An interview with Milton Friedman in 1996 ‐ presents his reflections on some of the important issues surrounding the evolution of, and currrent debates within, modern macroeconomics. A world‐renowned economist and prolific author since the 1930s, Milton Friedman has had a considerable impact on macroeconomic theory and policy making. Associated mostly with monetarism and the efficacy of free markets, his work has ranged over a broader area ‐ microeconomics, methodology, consumption function, applied statistics, international economics, monetary theory, history and policy, business cycles and inflation. In the interview discusses Keynes’s General Theory, monetarism, new classical macroeconomics, methodology, economic policy, European union and the monetarist counter‐revolution.