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. 40, No. 8, December

An Estimated Monetary DSGE Model with Unemployment and Staggered Nominal Wage Bargaining
THIS PAPER DEVELOPS andestimates a quantitative macroeconomic framework that incorporates labor market frictions. Our starting point is the now conventional monetary DSGE model developed by Christiano, Eichenbaum, and Evans (CEE 2005), Smets and Wouters...
How Important Is Money in the Conduct of Monetary Policy?
IT MIGHT BE THOUGHT obvious that a policy aimed at controlling inflation should concern itself with ensuring a modest rate of growth of the money supply. After all, every beginning student of economics is familiar with Milton Friedman's dictum that...
How Important Is Money in the Conduct of Monetary Policy? A Comment
JEL codes: E3, E4, E5 Keywords: monetary aggregates, inflation target, cashless economy. THERE IS HARDLY any issue of a more fundamental nature, with regard to monetary policy analysis, than whether such analysis can coherently be conducted in...
Managing Expectations
IT IS INCREASINGLY standard for central bankers, financial market participants, and academic researchers to describe management of expectations as central to monetary policy. (1) The idea of "managing expectations" arises in many specific contexts...
Monetary Aggregates and Liquidity in a Neo-Wicksellian Framework
WOODFORD (2003) DESCRIBES a class of New Keynesian models that has become the favored paradigm for macroeconomic analysis, and especially for monetary policy evaluation. "Woodford himself likes to call these models neo-Wicksellian" (NW) to draw attention...
Monetary Policy and Inflation in the 70s
THE CAUSES of the "great" inflation of the 1970s remain the subject of debate. One of the most popular explanations has been provided by Clarida, Gall, and Gertler (2000) (henceforth CGG). CGG argue that the great inflation was caused by a well-meaning,...
Monetary Theory: Where Do We Stand?
In June 2007, the Journal of Money, Credit and Banking (JMCB), the Swiss National Bank, and the University of Bern cosponsored a conference in Bern in order to honor Professor Ernst Balternsperger on the occasion of his retirement from the Economics...
News and Business Cycles in Open Economies
A KEY PROPERTY of business cycle data is the presence of strong comovement among the major macroeconomic variables. Output, consumption, investment, and hours worked are highly correlated at business cycle frequencies. Comovement among these variables...
Robustness and U.S. Monetary Policy Experimentation
CENTRAL BANKERS frequently emphasize the importance of taking parameter and/or model uncertainty into account when making decisions (e.g., see Greenspan 2004, King 2004). A natural way to do so is to cast an optimal policy problem as a Bayesian decision...
Why Money Growth Determines Inflation in the Long Run: Answering the Woodford Critique
SEVERAL ECONOMISTS FAMILIAR with New Keynesian models have argued that these models imply that money growth determines inflation in the long run. For example, Ireland (2004, p. 979) concluded an analysis of an estimated New Keynesian model by observing...