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. 36, No. 5, October

Another Perspective on the Effects of Inflation Uncertainty
The relationship between inflation uncertainty and real economic activity has been a topic of considerable interest, and both the theoretical and empirical literatures have produced some conflicting results. For example, some authors suggest that inflation...
Credit Derivatives Premium as a New Japan Premium
JEL codes: G10, G15, G21 Keywords: credit derivative, Japan premium, Japanese bank. AT THE HEIGHT of the Japanese banking crisis of 1997-98, a popular indicator of weakness was the so-called Japan premium, that is, the premium in the interest...
Diversification in Banking: Is Noninterest Income the Answer?
THE U.S. BANKING industry is steadily shifting away from traditional sources of revenue like loan making and toward activities that generate tee income, service charges, trading revenue, and other types of noninterest income. While noninterest income...
Financial Flexibility and the Cost of External Finance for U.S. Bank Holding Companies
BANKS RAISE FUNDS FROM segmented markets. While investors determine the risk premium in pricing uninsured claims, regulators play an important role in setting the risk premium on insured claims by assessing deposit insurance premia, and imposing other...
Geographic Deregulation of Banking and Economic Growth
In 1963, 13,291 U.S. banks operated 13,581 branches. By 1997, the number of banks fell to 9143 while the number of branches mushroomed to 60,320 (Radecki 1998). Changes in geographic banking markets arising from bank deregulation led to tremendous...
Scale Economies, Scope Economies, and Technical Change in Federal Reserve Payment Processing
This paper considers the roles of scale economies, scope economies, and technical change in electronic payments processing. Federal Reserve data for automated clearinghouse (ACH), Fedwire, and Book-Entry products are used to assess how costs vary when...
The Transitional Dynamics of Fiscal Policy: Long-Run Capital Accumulation and Growth
AN INITIAL ATTRACTION OF endogenous growth models was that they assigned a key role to fiscal policy as a determinant of long-run economic growth. However, these models have several shortcomings, leading to a reassessment of their merits. In particular,...
Why Do Real and Nominal Inventory-Sales Ratios Have Different Trends?
BUSINESS AND ACADEMIC economists closely watch the inventory-sales ratio as a portent of future production, a remnant of past mistakes, and a measure of supply chain efficiency. Specifically, the downward trend in the US inventory-sales ratio is often...