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. 31, No. 2, May

Budget Balance, Welfare, and the Growth Rate: "Dynamic Scoring" of the Long-Run Government Budget
It has long been recognized that a reduction in the tax rate applied to an economic activity leads to an increase in the taxed activity, thereby offsetting, at least in part, the direct loss in tax revenues resulting from the lower rate.(1) In fact,...
Credit Market Imperfections and the Heterogeneous Response of Firms to Monetary Shocks
Borrowing and sales by small firms falls significantly relative to large firms following a monetary contraction. Moreover, the spread between the interest rate on loans paid by "bank-dependent" firms compared to firms that use public debt markets for...
Disagreement and Uncertainty
A Reply to Rich and Butler by William A. Bomberger Rich and Butler (RB hereafter) provide useful evidence regarding the robustness of the relationship between the disagreement among the Livingston forecasters and the subsequent accuracy of the mean...
Exchange Rate Regimes and Shifts in Inflation Persistence: Does Nothing Else Matter?
The "Lucas critique" (Lucas 1976) presents a formidable challenge to any remaining adherents of a stable Phillips curve trade-off between inflation and unemployment. Lucas's basic premise is that rational agents' decision rules are regime dependent....
Technical Progress, Inefficiency, and Productivity Change in U.S. Banking, 1984-1993
The U.S. banking industry has had a tumultuous decade. Although large numbers of bank failures during 1985-91 have since given way to record profits, researchers continue to debate whether the industry faces long-term decline (for example, Wheelock...
The Big Problem of Small Change
Our title paraphrases one by Carlo Cipolla.(1) Like Cipolla, our subject is the process through which Western monetary authorities learned how to supply small change. Along with many other writers, Cipolla described how Western Europeans long struggled...
Valuing the Futures Market Clearinghouse's Default Exposure during the 1987 Crash
Futures and forward contracts are agreements between two parties to buy or sell an asset at a future date at a price set today. Futures contracts, unlike forward contracts, trade on organized exchanges. Futures market clearinghouses are intermediaries...