Aspects of German monetary and development economics and their reception in Japan RICHARD A . WERNER

Following empirical work by Goldsmith (1969) and McKinnon (1973), an increasing body of evidence about a positive link between finance and growth has been accumulated in the past decade or so by, among others,1

Gertler and Rose (1991), King and Levine (1992, 1993), and Roubini and Sala-i-Martin (1992). There has also been progress in the development of economic theories that might justify these empirical facts.2