The paper presents a simple theory of intraday behavior in the interbank market.

What kind of information do stock prices offer for predicting velocity? This paper develops previous work by Milton Friedman for the US economy and shows that a wealth effect derived from the stock market has negatively influenced the ratio of nominal income to a broad definition of money in a...

In many VARs, monetary policy shocks are identified with the least squares residuals from a regression of the federal funds rate on an assortment of variables. Such regressions appear to be structurally fragile and are at odds with other evidence on the nature of the Fed's reaction function;...

According to some, the commercial bank is anachronistic and in a state of terminal decline. The evidence, however is mixed. This paper takes a different approach to analyzing the future of banks.

By identifying the possibility of imposing a credible threat of liquidation as the key role of informed (bank) finance in a moral hazard context, and showing how credibility fails when liquidity values are low, this paper identifies the circumstances under which a mixture of informed and...

This paper is about how to evaluate credit and insurance programs like the Gramee Bank in Bangladesh; Accio, Prodem/Banco Sol in Bolivia, and the Badan Kredit Kacamatan (BKK), Indonesia, and how to formulate policy regarding financial sector reform.

This paper studies the effect of correlation in the retional beliefs of agents on the volatility of asset prices.

We analyse a change in the degree of transparency of MTS, the electronic inter-dealer market for Italian Government bonds, namely the July 1997 move to the anonymity of quotes.

We examine the equity premium pizzle with the prespective of the theory of Rational Beliefs Equilibrium (RBE) and show that from the perspective of this theory there is no puzzle.