14. Prechter, R., Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression (Hoboken, New Jersey: John Wiley & Sons, 2002), Figure 7.1.

15. Odean, T., Do Investors Trade Too Much? American Economic Review 89 (1999): 1279-1298.

16. De Bondt, W. and R. Thaler, Does the Stock Market Overreact? Journal of Finance 40 (1985): 793-808.

17. Thaler, R., ed., Advances in Behavioral Finance (New York: Russell Sage Foundation, 1993).

18. Berkshire Hathaway annual report 2003, 2.

19. Fuller & Thaler Asset Management, www.fullerthaler.com.

20. Popper, K., The Logic of Scientific Discovery (London: Hutchinson, 1959).

21. Tobias, A., Money Angles (New York: Linden Press, 1984).

22. Asch, S., Studies of Independence and Conformity: 1. A Minority of One against a Unanimous Majority, Psychological Monographs 70 (1956): 1-70.

23. Profet, M., The Evolution of Pregnancy Sickness as Protection to the Embryo against Pleistocene Teratogens, Evolutionary Theory 8 (1988): 177-190.

24. Lo, A., and D. Repin, The Psychophysiology of Real-Time Financial Risk Processing, Journal of Cognitive Neuroscience 14 (2002): 323-339.

Chapter 4 U.S. Economic Snapshot

1. Keynes, J.M., Economic Possibilities of Our Grandchildren, Essays in Persuasion (London: Macmillan, 1972).

2. Federal Reserve, www.federalreserve.gov.

3. Bureau of Economic Analysis, www.bea.gov, Table 2.1.

4. Bureau of Labor Statistics, www.bls.gov, Foreign Labor Statistics.

5. Schwarzenegger Press Conference, August 20, 2003.

6. Office of Management and Budget, Congressional Budget Office, see Figure 7.4 of this book.

7. Bureau of Labor Statistics, www.bls.gov.

8. Office of Management and Budget, Congressional Budget Office, see Figure 7.3 of this book.

9. Darwin, C., On the Origin of Species by Means of Natural Selection, or the Preservation of Favoured Races in the Struggle for Life (London: John Murray, 1859), Chapter 3.

10. Diener, E., Cross-Cultural Correlates of Life Satisfaction and Self-esteem, Journal of Personality and Social Psychology 68, no. 4 (1995): 653-664. Diener, E., E. Sand-vik, et al., The Relationship Between Income and Subjective Well-being: Relative or Absolute? Social Indicators Research 28, no. 3 (1993): 195-224.

Chapter 5 Inflation

1. Friedman, M., and A.J. Schwartz, A Monetary History of The United States: 1867-1960 (Cambridge: National Bureau of Economic Research, 1963), 695.

2. Roth, A.E., and X. Xing, Turnaround Time and Bottlenecks in Market Clearing: Decentralized Matching in the Market for Clinical Psychologists, Journal of Political Economy 105 (1997): 284-329.

3. Friedman, M., and A.J. Schwartz, A Monetary History of The United States: 1867-1960 (National Bureau of Economic Research, 1963), 696.

4. Quiggin, A., A Survey of Primitive Money; The Beginning of Currency (London: Methuen, 1907), 250.

5. Einzig, P., Primitive Money in Its Ethnological, Historical, and Economic Aspects, 2nd ed. (New York: Pergamon Press, 1966), 310.

6. Angell, N., The Story of Money (Garden City, NY: Garden City Publishing Company, 1929), 88-89.

7. Mankiw, N.G., Macroeconomics, 5th ed., (New York: Worth Publishers, 2003), 79.

8. Connolly, B., and R. Anderson, First Contact. New Guineas Highlanders Encounter the Outside World (New York: Viking Penguin, 1987).

9. Ringer, F., The German Inflation of1923 (London: Oxford University Press, 1969).

10. Bopp, K., Hjalmar Schacht: Central Banker, The University of Missouri Studies xiv, no. 1 (1939): 13.

11. Bresciani-Turroni, C., The Economics of Inflation; A Study of Currency Depreciation in Post-War Germany (New York: A. M. Kelley, 1968).

12. Tyran, J., and E. Fehr, Limited Rationality and Strategic Interaction-The Impact of the Strategic Environment on Nominal Inertia, University of St. Gallen Department of Economics working paper series, 2002.

13. Bernanke, B.S., and K. Carey, Nominal Wage Stickiness and Aggregate Supply in the Great Depression, Quarterly Journal of Economics 111 (1996): 853-883. Bordo, M.D., C.J. Erceg, et al., Money, Sticky Wages and the Great Depression, American Economic Review 90 (2000): 1447-1463.

14. Fischer, S., Why Are Central Banks Pursuing Long-Run Price Stability? in Achieving Price Stability (a symposium sponsored by the Federal Reserve Bank of Kansas City, 1996), 7-34.

15. Summers, L., Commentary: Why Are Central Banks Pursuing Long-Run Price Stability? in Achieving Price Stability (a symposium sponsored by the Federal Reserve Bank of Kansas City, 1996), 35-43.

16. Wincott Memorial Lecture, London, September 16, 1970.

17. Federal Reserve, www.federalreserve.gov; see Figures 6.3 and 6.4 of this book.

Chapter 6 Deficits and Dollars

1. Grabbe, O., The Rise and Fall of Bretton Woods, Chapter 1 in International Financial Markets, 3rd ed. (Englewood Cliffs, New Jersey: Prentice-Hall, 1996).

2. International inflation rates from the International Monetary Fund, country information, www.imf.org.

3. Bresciani-Turroni, C., The Economics of Inflation; A Study of Currency Depreciation in Post-War Germany (New York: A. M. Kelley, 1968).

4. Powell, J., A History of the Canadian Dollar (Ottawa: Bank of Canada, 1999).

5. The value of the Canadian dollar over time: Federal Reserve, www.federalreserve. gov, see foreign exchange rates, historical data.

6. Statistics Canada, national income and expenditure accounts. Catalogue no. 13-001-PPB, Fourth Quarter 2000.

7. Statistics Canada, www.statcan.ca.

8. The value of the Mexican peso over time: Federal Reserve, www.federalreserve.gov, see foreign exchange rates, historical data.

9. Federal Reserve, dollar indexes, historical data, www.federalreserve.gov.

10. International Monetary Fund, www.imf.org.

11. The End of the Affair? The Economist (February 18, 2004).

12. Mr. Norfield and Ms. Foley are quoted in the same article: Litterick, D., Euro Below 85 Cents after Duisenberg U-Turn Over Intervention, telegraph.co.uk, October 17, 2000.

13. Big Mac Index, The Economist (May 27, 2004).

Chapter 7 Bonds

1. Mehra, R., and E.C. Prescott, The Equity Premium: A Puzzle, Journal of Monetary Economics 15 (1985): 145-162.

2. Siegel, J.J., Stocks for the Long Run, 2nd ed. (New York: McGraw-Hill, 1998), and related Table 8.1 in this book.

3. Tobin, J., How to Think About the Deficit, New York Review of Books 33, no. 14 (September, 25, 1986).

4. Presidential debate, Boston, MA October 3, 2000.

5. Federal Reserve Chairman Alan Greenspans prepared remarks at the Conference on Bank Structure and Competition, sponsored by the Federal Reserve Bank of Chicago, Chicago, Illinois, May 6, 2004.

6. Burnham, T.C., Limits on Liability Actually Are What Invite the LBOs, the Wall Street Journal, February 1, 1989.