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. 36, No. 4, August

Evolving Post-World War II U.K. Economic Performance
IN RECENT YEARS, a vast literature has documented an increase in the stability of the U.S. economy over the last two decades. Kim and Nelson (1999) estimate a two-state Markov-switching model for real GDP growth via Bayesian methods, identifying a...
Introduction: The Tobin Approach to Monetary Economics
MY WIFE AND I MET Jim and Betty Tobin for the first time in Cambridge, probably in a year like 1947 or 1948, but that was not really the beginning of our friendship. Jim must have finished his Ph.D. thesis by then, and would soon decamp for Yale, neither...
Reaching Inflation Stability
INFLATION AND ITS variability entail large real costs to the economy. Several studies show that a 10% inflation rate can produce losses of around 3% of the real GNP through saving and investment misallocation or the loss of value of real balances (Fischer,...
Rule-of-Thumb Consumers and the Design of Interest Rate Rules
THE STUDY OF THE properties of alternative monetary policy rules, and the assessment of their relative merits, has been one of the central themes of the recent literature on monetary policy. Many useful insights have emerged from that research, with...
Taking Stock: Monetary Policy Transmission to Equity Markets
ONE CENTRAL ARGUMENT of James Tobin's seminal 1969 Journal of Money, Credit and Banking paper was that "financial policies" can play a crucial role in altering what later became known as Tobin's q, the market value of a firm's assets relative to their...
"The Real Thing": Nominal Price Rigidity of the Nickel Coke, 1886-1959
The price system works so well, so efficiently, that we are not aware of it most of the time. We never realize how well it functions until it is prevented from functioning, and even then we seldom recognize the source of the trouble. Milton...
Tobin's Imperfect Asset Substitution in Optimizing General Equilibrium
A CENTRAL MESSAGE of James Tobin's "General Equilibrium Approach to Monetary Theory" was that "[t]here is no reason to think that the impact [of monetary policy] will be captured in any single [variable] ..., whether it is a monetary stock or a market...