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. 41, No. 7, October

Do Actions Speak Louder Than Words? Household Expectations of Inflation Based on Micro Consumption Data
Survey of Consumers, Survey of Professional Forecasters, Euler equation. SURVEY DATA ON household inflation expectations are routinely used in economic analysis (see, e.g., Thomas 1999, Carroll 2003, Mankiw, Reis, and Wolfers 2004, Souleles 2004),...
Identification of New Keynesian Phillips Curves from a Global Perspective
NEW KEYNESIAN PHILLIPS CURVES (NKPC) have been widely used in the macroeconomic literature. Yet their empirical implementation raises a number of issues that continue to be of some concern. In this paper, we shall focus on two of these issues--the...
Mergers and Long-Term Corporate Performance: Evidence from Cross-Border Bank Acquisitions
NUMEROUS ACADEMIC STUDIES have explored the effects of mergers and acquisitions (Rhoades 1994). Most of the analysis has centered on providing evidence on the equity market reactions for the target firms, the bidder firms, and the combined wealth effects...
Model Misspecification, the Equilibrium Natural Interest Rate, and the Equity Premium
FOLLOWING THE SEMINAL contribution by Mehra and Prescott (1985), analyses of the equity premium and the risk-free real interest rate have normally been based on models which abstract from the nominal side of the economy, a modeling approach which takes...
Monetary Policy under Alternative Asset Market Structures: The Case of a Small Open Economy
How DOES THE STRUCTURE of international asset markets affect monetary policy? The debate surrounding optimal monetary policy in open economies has been extensive over the past decade. Many works have emphasized that optimal monetary policy in an open...
Repo Auctions and the Market for Liquidity
THE QUESTION OF public versus private provision of liquidity has recently received substantial attention as a result of the so-called subprime crisis. The crisis has made evident the importance of the market for liquidity for the broader financial...
The Effects of Monetary Policy on Unemployment Dynamics under Model Uncertainty: Evidence from the United States and the Euro Area
We are particularly grateful to Ken West (the editor) and two anonymous referees for extensive comments that substantially improved content and exposition of the paper. We would also like to thank Efrem Castelnuovo, Mark Giannoni, Gert Peersman, Frank...
The Elastic Provision of Liquidity by Private Agents
EVIDENCE ON THE determinants of corporate holdings of cash and marketable securities is consistent with the need of firms to be responsive to investment opportunities or cost shocks in the presence of a wedge between the cost of internal and external...
The Impact of Central Bank Independence on Political Monetary Cycles in Advanced and Developing Nations
THIS PAPER INVESTIGATES the extent to which monetary policy is manipulated for political purposes during election periods. In the political business cycle model of Nordhaus (1975), politicians attempt to lower the unemployment rate before elections...