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. 8, December

Fundamental Economic Shocks and the Macroeconomy
THIS PAPER INVESTIGATES how macroeconomic and financial variables respond to structural economic shocks. We use a relatively new and unexplored identification strategy that simultaneously identifies multiple impulses. Our strategy is linked to economic...
In Defense of Usury Laws
WITH THE SURPPASING exception of Adam Smith, the consensus among economists is that usury laws are "... mischievous interferences with the spontaneous course of industrial transaction" (Mill 1891). (1) Nevertheless, as Homer and Sylla (1991) document,...
Monetary Policy and Inflation Expectations in Latin America: Long-Run Effects and Volatility Spillovers
A LARGE NUMBER of countries have now adopted inflation targeting as their institutional framework for monetary policymaking with the ultimate goal of keeping inflation low and stable. Attainment of this policy objective depends crucially on the monetary...
Monetary Policy, Determinacy, and Learnability in a Two-Block World Economy
1. INTRODUCTION 1.1 Overview New Keynesian macroeconomic models have become a workhorse for studying a variety of monetary policy issues in closed economy environments. An important component of this effort has been the development of the idea...
Non-Atomistic Wage Setters and Monetary Policy in a New Keynesian Framework
NEW KEYNESIAN (NK) models have been extensively used in recent years to analyze the impact of monetary policy on business cycle fluctuations and to provide guidelines for the design of optimal monetary policy rules. NK literature commonly disregards...
On the Riskiness of Universal Banking: Evidence from Banks in the Investment Banking Business Pre- and Post-GLBA
HISTORICALLY, REGULATORY BARRIERS and restrictions governing the operations of U.S. commercial banks prohibited banks from expanding their operations into securities activities. Specifically, Section 20 of the Glass--Steagall Act of 1933 expressly...
The Taylor Principle and Monetary Policy Approaching a Zero Bound on Nominal Rates: Quantile Regression Results for the United States and Japan
THE TAYLOR PRINCIPE--which suggests central banks should raise short-term interest rates by more than the rate of inflation, increasing real interest rates when inflationary pressures emerge--is ubiquitous in modern monetary economics. Empirical studies...
Trend Inflation, Taylor Principle, and Indeterminacy
AVERAGE INFLATION IN the postwar period in developed countries was moderately different from zero and varied across countries. (1) Nonetheless, much of the extensive literature on monetary policy rules employed models approximated around the zero-inflation...
Using Survey Data to Correct the Bias in Policy Expectations Extracted from Fed Funds Futures
FEDERAL FUNDS FUTURES rates are the most popular market-based measures of monetary policy expectations in the United States. To understand how futures rates are used, Figure 1 shows the futures curve on October 4, 2006, when the federal funds target...