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. 32, No. 2, May

Analyzing Indeterminacies in a Real Business Cycle Model with Money
In the paper "Money in a Real Business Cycle Model" (1997) Roger Farmer develops a general equilibrium rational expectations macroeconomic model of business cycles. The model differs from basic real business cycle models in the inclusion of money in...
Analyzing Indeterminacies in a Real Business Cycle Model with Money
My purpose in writing the paper "Money in a Real Business Cycle Model" was to explore the idea that the monetary transmission mechanism may be explained in an equilibrium model in which preferences, endowments, and technology are, on their own, insufficient...
Inflation and the Capital Stock
THERE IS A RELATIVELY LARGE THEORETICAL LITERATURE that looks at the effect of inflation on an economy's capital stock. The basic question that this literature addresses is whether a persistent increase in a country's rate of inflation will lead to...
Lifting the Veil of Secrecy from Monetary Policy: Evidence from the Fed's Early Discount Rate Policy
HISTORICALLY, MONETARY POLICY has been conducted under a veil of secrecy. The economic rationale for secrecy is weak, however. Most economists believe that market forces will reinforce the policymakers' objective if they announce their intentions and...
Money Inventories in Search Equilibrium
THE PAPER EXTENDS THE BASIC SEARCH-THEORETIC MODEL of fiat money with indivisible money and indivisible real commodities by considering a model in which agents can accumulate as much money as they want. There are two reasons for doing so. First, in...
On the Derivation of Monetary Policy Shocks: Should We Throw the VAR out with the Bath Water?
THERE HAS BEEN A GREAT DEAL of recent interest in identifying monetary policy shocks and in estimating their effects on various macroeconomic variables. Christiano and Eichenbaum (1992) and Leeper and Gordon (1992), for example, focused on the "liquidity...
The Capitalization of Interest Subsidies: Evidence from Sweden
OWING TO THE WIDESPREAD USAGE of assumable mortgages and the sharp rise in mortgage rates during the second half of the 1970s and early 1980s, numerous U.S. house sales in the early 1980s were accompanied by below-market financing. This triggered a...
Variability in the Effects of Monetary Policy on Economic Activity
... there is much evidence that monetary changes have their effect only after a considerable lag and over a long period and that the lag is rather variable. In the National Bureau study on which I have been collaborating with Mrs. Schwartz, we have...
Why Money Talks and Wealth Whispers: Monetary Uncertainty and Mystique
IN WRITING ABOUT CENTRAL BANKERS Milton Friedman once said: "From revealed preference, I suspect that by far and away the two most important variables in their loss function are avoiding accountability on the one hand and achieve public prestige on...