Journal of Money, Credit & Banking

Reports major findings in the study of financial institutions, financial markets, monetary and fiscal policy, credit markets, money and banking.

Articles from Vol. 30, No. 1, February

Interest Rate Targeting and the Dynamics of Short-Term Rates
A feature of U.S. monetary policy has been active targeting of overnight fed funds rates. We show that during a period of tight targeting (1989-1996) term fed funds spreads from the target displayed pronounced volatility and persistence, which increase...
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International Evidence on the Neutrality of Money
We use the Backus and Kehoe (1992) long, low-frequency data on real GNP/GDP and money for Australia, Canada, Denmark, Germany, Italy, Japan, Norway, Sweden, the United Kingdom, and the United States to examine the long-run neutrality and superneutrality...
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Modeling U.S. Households' Demands for Liquid Wealth in an Era of Financial Change
Money demand models overpredicted M2 growth in the United States from 1990 to 1993. We examine this overprediction using a model of households' demands for liquid wealth. The model is a dynamic generalization of the AIDS model of Deaton and Muellbauer...
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Procyclical Multifactor Productivity: Tests of the Current Theories
This paper conducts various tests of four hypotheses to account for procyclical multifactor productivity. The hypotheses include imperfect competition, increasing returns to scale, labor hoarding, and thick market externalities. The test results provide...
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Testing for Excess Sensitivity in Consumption: A State-Space/unobserved Components Approach
This paper tests the joint rational expectations/permanent income hypothesis using a state-space/unobserved components model to specify anticipated and unanticipated elements of permanent, transitory, arid seasonal components of the income path and measure...
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The Credit Effects of Monetary Policy: Evidence Using Loan Commitments
In addition to the usual channels, monetary policy may affect spending by changing the supply of bank loans and the creditworthiness of borrowers. This paper tests for these credit effects using a contractual difference across commercial bank loans....
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Underwriting by Commercial Banks: Incentive Conflicts, Scope Economies, and Project Quality
We study the issue of commercial bank underwriting of securities. Our analysis examines the incentive conflict faced by intermediaries that both lend and underwrite securities, thereby imposing a cost on their customers seeking to raise capital. Despite...
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