This paper analyzes stock index reactions to interest rate actions by the FOMC. Unlike previous analyses this study utilizes macro-economic indicators and accounts for pre-decision market expectations. Results indicate significant reaction of the stock market to the actions of the FOMC regardless of interest rate actions matching pre-decision market expectations. Binary dummy variables representing the five days following an FOMC meeting indicate a significant reaction for days one; two and three of the Dow Jones model and for day five of the NASDAQ model. The magnitude of the coefficients are 0.17%, 0.09%, -0.07% and -.15% respectively. These findings may be sensitive to a priori choices regarding the definition of the market expectation variable.

This research shows that the Japanese rice policy has affected the volume of exported and imported rice; moreover, multilateral and bilateral agreements have also affected Japanese rice policy. Japan's institution of subsidies and trade barriers has made its rice products too expensive for foreign trade and its domestic consumers. Since the WTO agreement has forced Japan to open its market gradually over six years, Japan may be unable to compete internationally because of its limited land, high labor costs, and the field utility fees.