The paper reconsiders the role of money and banking in monetary policy analysis by including a banking sector and money in an optimizing model otherwise of a standard type. The model is implemented quantitatively, with a calibration based on US data. It is reasonably successful in providing an...

This study investigates the effectiveness of monetary and fiscal policies in the US by employing cointegration and a quatrovariate Vector Error Correction Model together with Granger causality tests. Two models are estimated: (i) nominal national income, the ten-year government bond yield, and...

This paper reports results of a test of money demand and supply as predicted by recent studies applied to small economies with greater openness to external factors. These results suggest that the short- and long-run money balances are determined by both the interest rate policies as well as the...

Transparency and openness of the monetary policymaking process at the Bank of England has provided very detailed information on both the decisions of individual members of the Monetary Policy Committee and the information on which they are based. We consider this decision making process in the...

Since the early 1990s, credit expanded relative to income, especially after 2001. It is hypothesized that traditionally uneven credit access and gaps in the costs of credit by demographic characteristics shrank during this period. Relying on data from the Federal Reserve’s Survey of Consumer...

Over the past few decades, financial markets became increasingly deregulated and household debt expanded, sometimes rapidly. It is thus possible that greater deregulation led to improved credit access for typically underserved groups, such as minorities and low-income families, relative to their...

The characteristics of the interest rate pass-through in the Czech Republic, Hungary and Poland are studied making use of autoregressive distributed lags (ARDL) models. Significant differences are found across market interest rates and countries concerning long-run elasticities of market...

The deficit of the Federal budget dominates the attention of the public arena. The process began with President Carter's ill-fated budget announcement in February 1980. The response of the bond market revealed at the time that an increasing segment of the public recognized the futility of...

Pessimism about the current economy and its near-term prospects is overstated. The economy has grown at a 2 1/2% rate for the last two years. This is slightly lower than the average for the last century, but the difference is small. Concerns about near-term prospects have encouraged a return to...

This sideways movement of money market interest rates reflects a standoff of opposing forces. On the one hand, the high rate of money growth has made the Federal Reserve reluctant to press interest rates down further; and the market, understanding both the Fed's reluctance and the danger that...