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. 23, No. 4, November

A Model of Covered Interest Arbitrage under Market Segmentation
In the conventional analyses of markets for spot and forward exchange, the concept of covered interest arbitrage plays a central role. Typically market participants are assumed to face the same transactions costs. However, differential lending and...
An Empirical Investigation of Changes in Scale Economies for the Commercial Banking Firm, 1979-1986
THE 1980s REPRESENT A PERIOD of technological and regulatory change perhaps unparalleled in American banking history. There have been tremendous advances in technology from the computer and communications industries. Regulatory restrictions regarding...
Asset Substitution and Monetary Volatility
THERE HAS BEEN MUCH DISCUSSION about the recent behavior of the monetary aggregates, in that the aggregates appear to be more volatile in the 1980s than they have been historically. The literature that addresses the behavior of the aggregates is partitioned...
Blue Chip Rationality Tests
THIS PAPER DEVELOPS TESTS FOR RATIONALITY in the forecasts made by economists who contribute to the Blue Chip Economic Indicators consensus forecasting service, and tries, by means of a questionnaire on forecasting methods, to determine why some forecasters...
Coca Dollars and the Dollarization of South America
MANY RESEARCHERS HAVE ADDRESSED THE ISSUE OF currency substitution between an unstable domestic currency and a more stable-valued foreign currency. [1] The great majority of studies have focused on substitutions between various Latin American currencies...
Managing the Dollar: Has the Plaza Agreement Mattered?
THE AGREEMENT IN SEPTEMBER OF 1985 among the finance ministers and central bankers of the major industrial countries, commonly known as the Plaza Agreement, has been described by some analysts as a watershed in the active management of exchange rates...
Partisan Effects in Economies with Variable Electoral Terms
INTEREST IN PARTISAN POLITICAL-ECONOMIC MODELS has recently experienced a revival, with most of the recent work concentrating on explaining the political business cycle in the United States. (1) However, the United States is a special case, its political...
The Role of the Federal Reserve as "Lender of Last Resort" and the Seasonal Fluctuation of Interest Rates
THE EFFECT OF THE FOUNDING OF THE FEDERAL RESERVE SYSTEM in 1914 on the seasonal fluctuation of interest rates has recently become an issue in the debate over the effectiveness of monetary policy. The traditional view, espoused recently by Jeffrey...