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. 33, No. 4, November

Bank Intermediation over the Business Cycle
A model is developed in which banks engage in valued asset transformation by converting illiquid assets (working capital loans) into highly liquid demand deposit accounts that households use for transactions purposes. Consumption-smoothing behavior...
Bank Ownership and Efficiency
Agency issues associated with different types of firm ownership are an area of concern in many banking systems where state-owned banks operate alongside mutual and private-sector institutions. This paper uses a variety of approaches to model cost and...
Elasticities of Substitution in Real Business Cycle Models with Home Production
This paper constructs a simple model of home production that demonstrates the connection between the intertemporal elasticity of substitution in market consumption (IES) and the static elasticity of substitution between home and market consumption...
Institutional Arrangements for Monetary Policy When Output Is Persistent
A discretionary monetary policy gives rise to a constant average inflation bias, a state-contingent inflation bias, and a stabilization bias when output is persistent. The paper considers institutional arrangements ("contracts") for central banks that...
Official Exchange Rate Arrangements and Real Exchange Rate Behavior
We study the behavior of real exchange rates under various official designations of exchange rate arrangements. Examining many currencies, we find important differences across the designations. Most notably, real exchange rate mean reversion is fastest...
Optimal Denominations for Coins and Bank Notes: In Defense of the Principle of Least Effort
A number of recent articles argue that the "problem of Bachet"--the problem of finding the most efficient set of standard weights--can shed light on the problem of finding the optimal denominations of coins and bank notes. The present note opposes...
Structural Change in the Mortgage Market and the Propensity to Refinance
We hypothesize that the intrinsic benefit required to trigger a refinancing has become smaller, due to a combination of technological, regulatory, and structural changes that have made mortgage origination more competitive and more efficient and have...
The Information Content of Bank Exam Ratings and Subordinated Debt Prices
Do supervisory examinations of large commercial banking firms produce useful information not already reflected in market prices? To investigate this question, we apply a new research methodology to data on bank exam ratings and the subordinated debt...