The widespread belief that one can read off the public's expectations of inflation from the yield differential between indexed and conventional bonds ignores the fact that indexed bonds are held largely by those who expect the most inflation. However, holding indexed bonds as a hedge against...

Recent behavior of velocity suggests that a stable monetary growth rate rule could have dangerous consequences. Hence this paper suggests a compromise-adjusting the money growth rate only in accordance with past changes in velocity. This preserves most of the benefits of a stable monetary growth...

Congress, late in 1991, enacted a banking reform measure that (i) authorizes $70 billion of additional FDIC funding, (ii) enhances bank regulation and supervision, and (Hi) adopts a "trip wire" system for increasingly severe regulation based on a bank's capital. Congress rejected a number of key...