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. 24, No. 2, May

A Computation of Interest Equivalences for Nonprice Characteristics of Bank Products
FOR A NUMBER OF FINANCIAL PRODUCTS, nonprice characteristics may be as important as the price of the product. In stockbroking services, analysts' advice and soft commissions feature prominently, in addition to commission rates. In banking, characteristics...
Read preview Overview
Consumer Durables: Evidence on the Optimality of Usually Doing Nothing
1. RATIONAL INERTIA: BASIC IDEAS ECONOMIC MODELS typically assume that an individual controlling a decision variable, [x.sub.t], gets new constraints and/or information each period (call that the vector [z.sub.t]), computes the value of the decision...
Read preview Overview
Deposit Rate Ceilings and the Market Value of Banks: The Case of France, 1971-1981
THERE IS A LONG TRADITION of deposit rate controls in France. Interest payments on demand deposits are prohibited and ceilings on savings and term deposit interest rates have been enforced for many years. This form of regulation could increase the profitability...
Read preview Overview
Monetary Aggregates as Monetary Targets: A Statistical Investigation
PROMPTED IN PART BY THE SHARP DECLINE IN M1 VELOCITY in the early 1980s, much recent empirical literature has sought to gauge the usefulness of various measures of the money stock as intermediate targets for monetary policy.(1) The models typically employed...
Read preview Overview
Portfolio Redistribution Impacts within the Narrow Monetary Aggregate
FOR MANY YEARS, THE Federal Reserve has focused on the narrow M1 transactions as a guide to policy. Traditionally, the M1 aggregate was regarded as a desirable policy guide because it bore a close and stable relationship to major macroeconomic goal variables,...
Read preview Overview
Structural Change in the Demand for Money
EVIDENCE OF PERIODS OF INSTABILITY and structural change in the demand for monetary assets has appeared in money demand studies since the early 1970s. The possibility of structural change in demand creates formidable empirical challenges., frustrating...
Read preview Overview
The Monetary Economics of Henry Meulen
A CONSEQUENCE OF THE RECENT INTEREST in "free banking" has been a resurgence of interest in the theories of neglected earlier writers whose work anticipated modern developments (see, for example, Cowen and Kroszner 1987, Summer 1990). A major contributor...
Read preview Overview
The Regional Representation of Federal Reserve Bank Presidents
AN ONGOING DEBATE WITH POPULIST OVERTONES has recently culminated in a number of lawsuits being filed questioning the constitutionality of having Federal Reserve Bank presidents serve on the Federal Open Market Committee (FOMC).(1) The major contention...
Read preview Overview
Treasury Bill Rates in the 1970s and 1980s
AS IS WELL KNOWN, real interest rates in the early 1980s were at peaks not witnessed since the late 1920s (Clarida and Friedman 1983; Hendershott 1986). These rates have generally been attributed to tight monetary policy (Clarida and Friedman), easy...
Read preview Overview