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. 1, February

Catching Up with the Joneses in a Sticky Price Model
IMPORTANT STYLIZED FACTS of business cycles have been documented by King and Watson (1996) and Stock and Watson (1999). They demonstrate that the growth rate spectra of selected real macroeconomic variables are relatively low at low frequencies, rise...
Central Bank Design in General Equilibrium
Objectives. In the last 20 years, two areas of research have had a dramatic impact on macroeconomic theory and policy. The first is the stochastic, competitive general equilibrium approach to studying macroeconomic fluctuations advocated by Lucas (1977)...
Expectations, Heterogeneous Forecast Errors, and Consumption: Micro Evidence from the Michigan Consumer Sentiment Surveys
Debate over the usefulness of consumer sentiment surveys in forecasting economic activity began soon after their introduction in the 1940s. The possibility that a decline in consumer confidence helped cause or worsen the 1990-91 recession renewed interest...
Interest Rate Policy in Continuous Time with Discrete Delays
A FUNDAMENTAL TOOL of monetary policy is the setting and control of the nominal rate of interest for the purpose of stabilizing inflation and employment. Whether the nominal rate should be an instrument of stabilization, and if so how it should be...
The Optimal Design of Interest Rate Target Changes
MOST CENTRAL BANKS currently use interest rate targets as their operating objective in the implementation of monetary policy. Central banks in Australia, Canada, Japan, and the U.S. all target an overnight interbank interest rate, while in most other...
The Role of Search Costs in Determining the Relationship between Inflation and Profit Margins
A NATIONAL SURVEY of purchasing managers in 1993 showed that inflation was the top concern for buyers at that time (Anonymous 1993). These buyers suspected that inflation would cause volatility in the prices they faced. Purchasing managers worried...
Why Are Prices Sticky? the Dynamics of Wholesale Gasoline Prices
THE FAILURE of prices to adjust immediately to changes in fundamentals is central to many of the key issues in economics. Why don't prices change every day? This paper investigates nine individual gasoline wholesalers, and tries to predict on which...