This Handbook aims to give practical guidance on the essential questions which have to be addressed in the establishment of deposit insurance schemes. It examines the rationale for deposit insurance and the risk that insurance creates moral hazard. It then discusses the differences between...

In this paper, the authors argue that survey data on exchange-rate expectations is especially useful fo r testing whether the forward market for foreign exchange is efficien t, since it obviates the need to impose a joint hypothesis on a stand ard efficiency equation. They utilize such data for...

This Handbook aims to explain the nature and importance of consolidated supervision of banks and the techniques by which it can be implemented. It begins by describing the pioneering work of the Basle Committee in relation to the consolidated supervision of international banking groups. It then...

In this paper we use a recently developed multivariate cointegration technique to analyse the degree of policy convergence of EMS member relative to that of some non-EMS countries. Interestingly, we find convergence for the nominal and real exchange rates and money supplies of the EMS members...

In this paper, the relationship between unanticipated sterling M3 and a variety of asset prices is investigated for part of the United Kingdom's experience with monetary targeting using survey data. It is demonstrated that the U.K. survey data are r ational in that they are an unbiased and...

In this paper we propose an alternative explanation for the nature, sources and consequences of inflation rate differentials in a monetary union, such as EMU. To achieve this, we build on the new neoclassical synthesis (NNS) framework, recently advanced by Goodfriend (2002) and Goodfriend and...

We propose an alternative explanation for the nature, sources and consequences of inflation rate differentials in a monetary union, such as the euro area. We build on the new neoclassical synthesis (NNS) framework, recently advanced by Goodfriend [Goodfriend, M. 2002. Monetary Policy in the New...

Using survey data, this paper investigates two theories concerning the consequences of unan ticipated increases in aM3, the broad U.K. monetary aggregate, over t he period 1981.10 to 1985.8. In order to decide whether market operat ors believe that monetary laxity will be reversed (the policy...