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. 26, No. 1, February

An Empirical Test of the Incentive Effects of Deposit Insurance: The Case of Junk Bonds at Savings and Loan Associations
The Case of Junk Bonds at Savings and Loan Associations Much of the debate concerning the savings and loan (S&L) crisis has focused on questions regarding the various investments undertaken by S&Ls. The Financial Institutions Reform,...
Bank Credit Commitments, Credit Rationing, and Monetary Policy
The use of bank credit commitments increased dramatically in the 1980s, rising from about 50 percent of all commercial lending in 1980 to 75 percent in 1990. A credit commitment is a promise by a bank to lend to the commitment holder. The typical contract...
Buffer-Stock Money: Interpreting Short-Run Dynamics Using Long-Run Restrictions
According to proponents of the "buffer-stock" or "disequilibrium money" hypothesis, observed changes in the real stock of money may reflect either (i) a change in one or more determinants of the long-term or "target" demand for money, or (ii) a shock...
Further Evidence concerning Expense Preference and the Fed
In an interesting paper, Boyes, Mounts, and Sowell (1988) (hereafter BMS) empirically studied the existence of expense-preference behavior on the part of the Federal Reserve. The paper hypothesized that the Fed, being a bureaucracy, might be more interested...
Government Spending and Private Consumption: Some International Evidence
This paper investigates the relationship between private consumption and government consumption. Until relatively recently, government purchases were thought to have no direct relationship to private consumption. Today, the consensus opinion seems...
Keeping Up with the Joneses: Consumption Externalities, Portfolio Choice, and Asset Prices
The present paper trips to formalize the notion of investment in financial assets as a social activity by introducing a particular type of consumption externalities in otherwise standard portfolio and asset pricing models. The "social aspects" of...
The Nonstationarity of Aggregate Output: Some Additional International Evidence
Since the seminal study by Nelson and Plosser (1982) the question of whether macroeconomic variables have a unit root has received much attention. The most important implication of the existence of a unit root is that innovations are not transitory...
The Role of Collateral in a Model of Debt Renegotiation
How does the prospect of future debt renegotiation affect the lender's security interests at the contracting date? We study this question in a simple model of borrowing and lending with asymmetric information. A risk-neutral entrepreneur needs to raise...
U.S. Treasury Bill Forward and Futures Prices
1. INTRODUCTION One of the difficulties in testing hypothesis about the term structure of interest rates is to empirically disentangle movements in yields due to changed expectations of future interest rates from changes due to altered term premiums....
Were Financial Crises Predictable?
This paper empirically investigates the nature of financial crises in the United States in the pre-World War I era in an attempt to shed light on their informational characteristics and on their generating mechanisms. In particular, the paper addresses...