This second article of a two-article set analyzes the conjunction of the holder in due course doctrine, securitization of residential mortgages and predatory lending. Predatory and deceptive lending, widely documented in the media and in Congressional and regulatory hearings, is the practice by...

The dissension on the mechanism of determination of interest rate is always in the center of much confusion and many controversies of monetary economics. Keynes's liquidity preference theory remains at the core of the center. This paper starts off with analyzing the inherent logic of liquidity...

Geometric optimisation algorithms are developed that efficiently find the nearest low-rank correlation matrix. We show, in numerical tests, that our methods compare favourably to the existing methods in the literature. The connection with the Lagrange multiplier method is established, along with...

This paper first examines two approaches to money adopted by Keynes in the General Theory (GT). The first is the more familiar "supply and demand" equilibrium approach of Chapter 13 incorporated within conventional macroeconomics textbooks. Indeed, even Post Keynesians utilizing Keynes's...

In the present paper we analyse whether fundamental macroeconomic factors, temporary influences or more structural factors have contributed to the recent decline in bond yields in the US. For that purpose, we start with a very general model of interest rate determination in which risk premia are...

This paper presents a model in which agents choose to use money as a medium of exchange, a means of payment, and a unit of account. The paper defines conditions under which nominal contracts, promising future payment of a fixed number of units of fiat money, prove to be the optimal contract form...

NOTE: This is a description of the paper and is not the actual abstract. In the absence of forward rates, testing for the impact of capital account liberalization measures using tests of covered interest parity is not feasible. This paper argues that additional information can be gained by...

The purpose of this note is to derive measures of ex ante long-term real interest rates that satisfy Fisher's notion of a long-run relationship between expectations of inflation and nominal interest rates. We do so by adopting a backward-looking approach that also takes account of the increasing...

The Fed kept interest rates low and essentially unchanged during the late 1990s despite a booming economy and record-low unemployment. These interest rates were accommodative by historical standards. Nonetheless, inflation remained low. How did the Fed succeed in sustaining rapid economic growth...

We use the inflation premium - the difference between nominal and real interest rates - as a proxy for expected inflation in the context of the New Keynesian Phillips Curve. Using data from inflation-indexed and nominal bonds we estimate a forward-looking Phillips curve for the United Kingdom...