This paper develops a model in which panics are caused by the strategic behavior of agents who temporarily monopolize the supply of privately controlled cash reserves. The decision to exercise this "monopoly power" results in localized "corners" on the money market and hence an abrupt alteration...

This paper examines the mechanism through which banking sector distress affects the availability of credit. We use the experience of the United States during the Great Depression, a period of intense bank distress, to conduct our analysis. We utilize previously neglected data from a 1934 survey...

Speech delivered to the Utah State Bankers Convention.

This paper examines the ability of a simple stylized general equilibrium model that incorporates nominal wage rigidity to explain the magnitude and persistence of the Great Depression in the United States. The impulses to our analysis are money supply shocks. The Taylor contracts model is...