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Investors' Portfolio Behavior Under Alternative Models of Long-Term Interest Rate Expectations : Unitary, Rational, or Autoregressive

Friedman, Benjamin M. - 1980

This paper develops behavioral relationships explaining investors' demands for long-term bonds, using three alternative hypotheses about investors' expectations of future bond prices (yields). The results, based on U.S. 'data for six major categories of bond market investors, consistently...

Persistent link: https://www.econbiz.de/10012478678

A Note on the Derivation of Linear Homogeneous Asset Demand Functions

Friedman, Benjamin M. - 1979

Among the numerous familiar sets of specific assumptions sufficient to derive mean-variance portfolio behavior from more general expected utility maximization in continuous time, the assumptions of constant relative risk aversion and joint normally distributed asset return assessments are also...

Persistent link: https://www.econbiz.de/10012478803

How Important is Disaggregation in Structural Models of Interest Rate Determination?

Friedman, Benjamin M. - 1978

The results presented below demonstrate that the structural modeling approach to interest rate determination not only stands apart from the sectoral disaggregation question conceptually but also performs fairly well without sectoral disaggregation empirically. This paper presents estimation and...

Persistent link: https://www.econbiz.de/10012478856

Crowding Out Or Crowding In? The Economic Consequences of Financing Government Deficits

Friedman, Benjamin M. - 1978

The prevailing view of the economic consequences of financing government deficits, as reflected in the recent economics literature and in recent public policy debates, reflects serious misunderstandings. Debt-financed deficits need not "crowd out" any private investment, and may even "crowd in"...

Persistent link: https://www.econbiz.de/10012478866

Price Inflation, Portfolio Choice, and Nominal Interest Rates

Friedman, Benjamin M. - 1978

nominal interest rates and expected price inflation, portfolio behavior is the most plausibly flexible in the short run. Since … important lenders' portfolio behavior can be in bringing about the adjustment of interest rates which Fisher's theory associates … with expected inflation. Given the importance of this adjustment for questions of both monetary theory and monetary policy …

Persistent link: https://www.econbiz.de/10012478903

Portfolio Choice and the Debt-to-Income Relationship

Friedman, Benjamin M. - 2010

The ratio of outstanding debt to gross national product in the United States has shown essentially no time trend over a period measured not in years but in decades. The research reported in this paper indicates that lenders' portfolio behavior exhibits characteristics that could provide...

Persistent link: https://www.econbiz.de/10012762966

Price Inflation, Portfolio Choice, and Nominal Interest Rates

Friedman, Benjamin M. - 2010

Persistent link: https://www.econbiz.de/10012763220

Investors' Portfolio Behavior Under Alternative Models of Long-Term Interest Rate Expectations : Unitary, Rational, or Autoregressive

Friedman, Benjamin M. - 2010

Persistent link: https://www.econbiz.de/10012763222

Decoupling at the Margin : The Threat to Monetary Policy from the Electronic Revolution in Banking

Friedman, Benjamin M. - 2010

The threat to monetary policy from the electronic revolution in banking is the possibility of a decoupling' of the operations of the central bank from markets in which financial claims are created and transacted in ways that, at some operative margin, affect the decisions of households and firms...

Persistent link: https://www.econbiz.de/10012763283

Has the Financial Crisis Permanently Changed the Practice of Monetary Policy? Has It Changed the Theory of Monetary Policy?

Friedman, Benjamin M. - 2014

theory, which has focused on central banks' liabilities, the basis for the effectiveness of central bank asset purchases … turns on the role of the asset side of the central bank's balance sheet. The implications for monetary theory are profound …

Persistent link: https://www.econbiz.de/10012458536