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. 1, February

Company Sector Liquid Asset Holdings: A Systems Approach
Success in Implementing Control of monetary aggregates requires stable asset demand functions. In the United Kingdom, aggregate studies established a stable demand for narrow money, M1 (for example, Hendry 1979, 1985), over the 1970-1984 period, but...
Competitive Externalities and the Optimal Seigniorage
The optimal inflation tax literature originates with Friedman (1969). He considers the case of a central bank with monopoly power in supplying nominal money balances, which may use this power to tax money holders by inflation. This approach generated...
Debt Management Objectives for a Small Open Economy
In his seminal essay on debt management, Tobin (1963) states: The problem of debt management, the, can be put in these terms: How are the longrun costs on a given volume of federal debt to be minimized, given the contribution that debt management...
Does the Federal Reserve Respond to Errant Money Growth? Evidence from Three Monetary Regimes
Many studies regarding Fed behavior have concentrated on revealing the macroeconomic objectives that have most influenced monetary policy. (1) With the rekindling of the monetarist school and establishment of growth targets for the monetary aggregates...
Fiscal Policy and the Term Structure of Interest Rates: An Intertemporal Optimizing Analysis
Recently, there has been a growing literature analyzing the effects of macroeconomic policy on the term structure of interest rates. Most of these studies use some variant of the IS--LM model, augmented to include an arbitrage relationship linking...
Innovations in Interest Rates, Duration Transformation, and Bank Stock Returns
THIS PAPER RELATES THE CROSS-SECTIONAL VARIATION in the sensitivity of bank stock returns to unexpected changes or innovations in interest rates. We seek an improved understanding of the duration transformation undertaken by banks and its influence...
The Long-Run Behavior of the Real Exchange Rate: A Reconsideration
This paper presents the results of a new test of whether or not the real exchange rate is a random walk. The behavior of the real exchange rate is intimately related to the behavior of deviations from purchasing power parity (PPP). There is widespread...
The National Bank Note Controversy Reexamined
The national bank note controversy refers to the paradoxical reluctance of banks to commit the maximum allowable fraction of their capital to the issue of national bank notes after the Civil War. Before 1900, national banks were allowed to devote...