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. 35, No. 3, June

Bank Capital Structure, Regulatory Capital, and Securities Innovations
ON OCTOBER 21, 1996, the Federal Reserve granted bank holding companies (BHCs) a cost-effective way to raise regulatory capital in the form of a debt-equity hybrid called trust-preferred securities (TPS). (1) Issued by a special-purpose financing vehicle...
Deregulation, Ownership, and Productivity Growth in the Banking Industry: Evidence from India
THE BANKING INDUSTRY in most economies has historically been much more regulated than other industries. Unlike other industries, the collapse of banks can have economy-wide repercussions as the payments system gets disrupted. Such regulation has been...
Distortionary Taxation and Labor Supply
THIS PAPER examines empirically the effects of distortionary taxation on labor supply. The analysis is carried out using a general equilibrium model where public consumption can act as partial substitute of private consumption and taxes are paid on...
Hybrid Inflation and Price-Level Targeting
THAT INFLATION TARGETING by central banks is so widespread--55 out of 91 countries in the Julius et al. (1999) survey follow an explicit inflation target--is testament to the consensus view that price stability, somehow defined, brings with it benefits....
Mortgage Default and Possession under Recourse: A Competing Hazards Approach
SEVERAL STUDIES have argued that borrower and lender behavior after the initial default on a mortgage may significantly affect the value that lenders can recover. In his 1992 AREUEA Presidential Address, Vandell pointed out (see Vandell 1993) that...
Testing for Market Discipline in the European Banking Industry: Evidence from Subordinated Debt Issues
THE ABILITY of financial markets to discipline bank behavior by pricing their uninsured debt according to their risk profile has recently gathered significant attention as numerous academic and regulatory economists have suggested that bank supervisors...
What Moves OECD Real Interest Rates?
THIS PAPER uses a structural time-series analysis to expose the properties of ex-ante real interest rates of the five major OECD economies in relation to temporary and permanent shocks to real output. Following Blanchard and Quah (1989), we refer to...
What Starts Inflation: Evidence from the OECD Countries
REPEATED EPISODES OF moderate inflation were a central characteristic of many OECD economies during the 1960s, 1970s, and 1980s. This inflation experience is documented in Figure 1, which plots trend inflation for 19 OECD countries since 1960. (1)...