ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00241.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

Especially for monetarists–but for nonmonetarists as well– the demand function for money is of crucial importance for understanding macroeconomic activity and for making policy prescriptions. However, recent relationships between the money supply and aggregrate spending have generated increasing skepticism regarding the stability of money demand and the merits of using monetary aggregates as the bases for monetary policy. The author has formulated a demand for money function similar to so‐called “conventional” models in most respects. But its specification differs from these other models in two important ways– the choice of interest rates and the determination of real income elasticity. Using his specification, the author finds that money demand continues to be highly stable and argues that the case for basing policy and setting targets in terms of Ml is as strong as ever. He concludes that the close correspondence between actual and predicted velocity implies that the recent high growth rate of Ml is not inflationary but merely has accommodated a comparable increase in m

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00242.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

From the end of 1984 through the middle of 1986, the monetary aggregate Ml growth rate has been extremely rapid by historical standards. The author argues that much of this rapid Ml growth reflects a transfer of funds out of banks' nonmonetary liabilities into banks' negotiable order of withdrawal (NOW) accounts. Prompting this transfer was the fall in market rates relative to rates offered on NOWs. In addition, the level of compensating balances that banks required of their corporate customers appears to have become more sensitive to market rates. Two measures are suggested to increase the usefulness of Ml targeting. The first is to use a shift‐adjusted Ml series, that is, a series adjusted for the flow of funds between NOW accounts and time deposits of banks. The second is to adjust Ml targets in light of interest rate change

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00243.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

A wide variety of explanations has been offered for the rapid M1 growth since early 1985. One such explanation focuses on a possible increase in the interest elasticity of money demand. We use a nonstructural framework and begin by simply asking how an increase in the degree of substitutability among monetary aggregates would affect the sample correlations among aggregates and interest rates. We then compare our answers with some summary statistics to argue that the 1980s have, in fact, witnessed a change in the behavior of money consistent with increased substitutability.

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00244.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

This paper examines the role of measures of total transactions in explaining growth in the demand for Ml money balances. Fueled by strong growth in financial activities, total transactions have grown rapidly relative to nominal GNP, especially since 1979. In an aggregate Ml equation, we find financial transaction measures to be of some additional help in explaining Ml growth, beyond the ability of GNP to do so alone. A disaggregated approach shows more promise, with transaction measures improving the explanation of demand deposit growth.

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00245.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00246.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

This paper portrays Federal Savings and Loan Insurance Corporation (FSLIC) forbearance and congressional unwillingness to increase the FSLIC's human or capital resources to the size necessary to handle developing economic insolvencies as a joint policy crime that has served to bifurcate the savings and loan industry into the living and the living dead. As agents for the taxpayer, Congress and the FSLIC have assumed too much discretion and have chosen to exercise that discretion myopically. An agent has a duty to represent its principal's economic interests more effectively than this. The FSLIC's policy touchstone should be to negotiate and enforce the same kind of covenant provisions that a prudent private guarantor would require.

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00247.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

Recently, the bank regulatory agencies have adopted capital forbearance programs to permit some troubled agriculture and energy banks to operate temporarily with capital levels below the regulatory minimum requirement. In a world with federal deposit insurance and a lender of last resort, bank capital is no longer viewed by all depositors as the primary protector of their funds. Thus, they reduce their market discipline. Bank owners/ managers are likely to respond by increasing their risk exposure in an attempt to regain profitability. If they win, they keep all the gains; if they lose, the losses are passed on to the Federal Deposit Insurance Corporation (FDIC). A preferred policy is to require these banks to raise additional capital at this time or to be sold. Capital forbearance is forbearance of incumbent bank management/owners, not of bank customers.

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00248.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

Deposit insurance funds, especially the Federal Savings and Loan Insurance Corporation, are currently in visible trouble. Two central defects of the existing deposit insurance system are identified: (1) mispricing of the insurance premiums and (2) incentives for both the industry and the insurance agencies to postpone recognizing and realizing losses.Insurance premiums are mispriced because they are assessed at the same rate for all institutions, which creates a bias for banks to take greater risks. Practical difficulties of setting an appropriate risk‐based premium for each bank are real but not necessarily insurmountable. In particular, the sale by the bank of unsecured and uninsured debt could provide a market measure of default risk, under a given failure rule.The choice of a failure rule is also a critical matter. Current failure rules are poorly defined and permit insolvent institutions to continue in operation. Specifying a market value test of insolvency in the statutes would be helpful, but it would have to be supported by market‐value accounting requirements and stronger pressures on banking authorities not to defer act

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00249.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY

摘要:

A long‐term solution to the international debt problem is achieved when debtor countries can return to the marketplace without assistance or negotiation with foreign governments and international agencies. The prospects of major debtors' returning are very different and are most likely for Brazil. Various proposals are discussed, including proposals to exchange bank loans at market value for equity. Secretary Baker s proposal, which is opposed by the Shadow Financial Regulatory Committee, is also discusse

ISSN:1074-3529    

DOI:10.1111/j.1465-7287.1987.tb00250.x

出版商:Blackwell Publishing Ltd    

年代:1987

数据来源: WILEY