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. 25, No. 2, May

Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence
The degree of central bank independence varies considerably across countries. Several authors including Bade and Parkin (1982), Alesina (1988, 1989), and Grilli, Masciandaro, and Tabellini (1991) found that more independent central banks are associated...
Estimating the Open Market Desk's Daily Reaction Function
This paper presents the results of an empirical investigation into the proximate determinants of the Federal Reserve's daily open market operations. Although there is a substantial extant literature concerning the modeling and estimation of the Federal...
Financial Deregulation and the Dynamics of Money, Prices, and Output in New Zealand and Australia
THIS PAPER INVESTIGATES THE INTERACTIONS among money, prices, and output in New Zealand and Australia over the period 1965-1989. A wide range of measures aimed at economic liberalization and restructuring have been undertaken in these two OECD countries...
Freely Determined versus Regulated Prices: Implications for the Measured Link between Money and Inflation
This paper explores the importance for the measured link between money and inflation of measuring inflation from indices that include prices that, by virtue of being regulated, are unlikely to respond systematically to the forces of supply and demand.(1)...
Inflation-Proof Currency? the Feasibility of Variable Commodity Standards
There is increasing interest in a proposal for monetary reform in which the value of currency is tied to the value of a defined basket of goods. The issuing bank does not, however, achieve this end by undertaking to exchange its notes directly for...
Is Money Really Exogenous? Testing for Weak Exogeneity in Swiss Money Demand
An important assumption in buffer stock models is the exogeneity of money.(1) These types of models have been advanced to explain the apparent breakdown of conventional money demand equations (see Judd and Scadding 1982a) by arguing that they are really...
Real Interest Rates and Government Debt during Stabilization
High real interest rates are a common component of stabilization attempts. Dornbusch and Fischer (1986) report that high real rates occurred as part of the process that ended the "classic" hyperinflations of the 1920s. A similar result could be observed...
Tax Timing and Liquidity Constraints: A Heterogeneous-Agent Model
Some consumers appear constrained by liquidity; others do not. Some families leave bequests; others do not. Campbell and Mankiw (1989) demonstrate that aggregate consumption data can best be viewed as generated by a two-agent model in which one agent...
The Effect of Borrowing Constraints on Consumer Liabilities
How do borrowing constraints affect consumer debt holdings? If consumers are unable to obtain the credit they want--either because of quantity rationing or interest rate differentials--actual debt is lower than desired. So liquidity constraints may...
Why Should Governments Issue Bonds?
In a first-best world, the optimal nominal interest rate on government bonds is zero. As Bryant and Wallace (1979) observe, since money and bonds are both costless to produce, paying interest on bonds but not on money is a distortion, and adding a...