The economists do not deny that monetary easing is positive for the stock market.

The Bank of Japan's policy board decided unanimously to hold monetary policy steady, resisting government pressure for further monetary easing.

"But if the yen weakens as a result of the monetary easing, that will be a plus for exporters."

Still, others - who get a favorable hearing from the government - call for yet more monetary easing.

First, the euro will finally weaken (to maybe $1.15), providing some backdoor monetary easing.

Federal officials are reported to be deeply divided over the benefits of further electronic monetary easing.

Bank reform and monetary and fiscal easing, they agree, are not enough to solve Japan's woes.

In doing so, he appeared to signal his intention to support at least one more rate cut to cap off a yearlong campaign of aggressive monetary easing.

Mr. Fine said that he believed the current yield curve suggested a monetary easing of 50 to 75 basis points.

But when he had said the same thing before the Senate panel, stock and bond prices dropped sharply because many investors concluded that monetary easing was over.