https://muse.jhu.edu/journal/123 Project MUSE®: Latest articles in Journal of Money, Credit, and Banking. daily 1 2026-05-12T00:00:00-05:00 text/html en-US Vol. 34 (2002) - vol. 38 (2006) Latest Articles: Journal of Money, Credit, and Banking TWO Project MUSE® Journal of Money, Credit, and Banking 1538-4616 0022-2879 Latest articles in Journal of Money, Credit, and Banking. Feed provided by Project MUSE® https://muse.jhu.edu/article/209037 <p></p> The geographic area over which banks are willing to lend has important implications for the nature of competition in bank lending and, consequently, the application of antitrust policy to the banking industry. There is ample evidence, both anecdotal and systematic, that a number of large banking organizations, spurred on by innovations such as credit scoring, have substantially broadened the distances at which they are willing to extend some kinds of commercial loans. Indeed, for some large institutions and for some types of commercial credit, loans previously restricted by geography now appear to be offered virtually nationwide.If these findings portend a greater willingness of lenders to extend credit to faraway ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Commercial Lending and Distance: Evidence from Community Reinvestment Act Data 2007-01-22 text/html en-US Commercial Lending and Distance: Evidence from Community Reinvestment Act Data 2007-01-22 2007 TWO Project MUSE® 123009 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209038 <p></p> Unofficial &#x22;dollarization&#x22; has become a pervasive phenomenon in many emerging market economies. Discussions of the dollarization phenomenon have often focused either on official dollarization, where a government abandons the domestic currency and replaces it with a &#x22;hard&#x22; foreign currency (such as the U.S. dollar), or on unofficial currency substitution, i.e. the competition between U.S. dollars and the domestic currency as a medium of exchange. In this paper, we focus on unofficial dollarization in the sense of asset substitution, where a foreign currency competes with local assets, especially domestic capital, as a store of value. The paper assesses the impact of dollarization on capital accumulation, a topic ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Dollarization Traps 2007-01-22 text/html en-US Dollarization Traps 2007-01-22 2007 TWO Project MUSE® 195470 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209039 <p></p> A growing literature has addressed the possibility that monetary policy actions do not only affect aggregate demand, but also exert an influence on economic variables through the supply side; namely, they influence firms&#39; interest expenses on working capital and, as a consequence, marginal costs of production and output prices.The implications of such a conjecture are far reaching. The most apparent is that in the short run an increase in interest rates may cause prices to rise, rather than to fall. The possibility that monetary policy shares some of the features of a supply shock would also help to explain the large and persistent effects of monetary policy on the real economy. Last but not least, the existence of ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Is There a Cost Channel of Monetary Policy Transmission? An Investigation into the Pricing Behavior of 2,000 Firms 2007-01-22 text/html en-US Is There a Cost Channel of Monetary Policy Transmission? An Investigation into the Pricing Behavior of 2,000 Firms 2007-01-22 2007 TWO Project MUSE® 194766 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209040 <p></p> Macroeconomic questions are posed most often in terms of how aggregate variables move together over time. However, many interesting and important questions deal with how market-specific shocks affect economic aggregates, while others focus on the effects of aggregate shocks on the behavior of specific markets. An example of the latter is the literature on the relation between inflation and the dispersion, or more generally the distribution, of relative goods prices across product or commodity markets.1 Clearly, the primary motivation behindRelative Price Dispersion and Inflation&#x2014;Three-digit Commodity Pricesthis work is to fully understand the costs of inflation&#x2014;if inflation, or its variability, is associated with ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Inflation and the Distribution of Relative Prices: The Role of Productivity and Money Supply Shocks 2007-01-22 text/html en-US Inflation and the Distribution of Relative Prices: The Role of Productivity and Money Supply Shocks 2007-01-22 2007 TWO Project MUSE® 179353 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209041 <p></p> The last two decades have seen a tremendous body of work attempting to characterize empirically the transmission of monetary policy shocks based on structural Vector Autoregressions (VAR). In light of the contributions by Christiano, Eichenbaum, and Evans (1999), Woodford (2003), and others, it seems fair to speak of an emerging consensus on the basic pattern of the economy&#39;s response to a monetary policy shock. Nonetheless, the precise channels of transmission and their relative importance have remained a topic of debate. In particular, it is largely unclear whether or not there is a significant channel of transmission above and beyond the classical interest rate channel. One serious candidate is provided by the ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Fleshing out the Monetary Transmission Mechanism: Output Composition and the Role of Financial Frictions 2007-01-22 text/html en-US Fleshing out the Monetary Transmission Mechanism: Output Composition and the Role of Financial Frictions 2007-01-22 2007 TWO Project MUSE® 248384 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209042 <p></p> Recent empirical work has reported evidence that purchasing power parity (PPP) deviations can be parsimoniously modeled as univariate nonlinear time series processes (see e.g., Obstfeld and Taylor, 1997, Michael, Nobay, and Peel, 1997, Taylor, Peel, and Sarno, 2001, Kilian and Taylor, 2003).1 The Exponential Smooth Autoregressive (ESTAR) model of Ozaki (1985) captures the adjustment mechanism implied or derived in the theoretical analyses of PPP by a number of authors (see e.g., Dumas, 1992, Sercu, Uppal, and Van Hull, 1995, O&#39;Connell, 1998, Berka, 2002).2 In these analyses the authors demonstrate how transactions costs, transport costs, or the sunk costs of international arbitrage induce nonlinear adjustment of ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall A New Analysis of the Determinants of the Real Dollar-Sterling Exchange Rate: 1871-1994 2007-01-22 text/html en-US A New Analysis of the Determinants of the Real Dollar-Sterling Exchange Rate: 1871-1994 2007-01-22 2007 TWO Project MUSE® 167745 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209043 <p></p> Since the breakdown of the Bretton Woods System in early 1973, many major currencies have floated against the U.S. dollar. Since then, a large body of research has been devoted to studying the time-series properties of exchange rates and to testing the efficiency of the foreign exchange (FX) market. One strand of such literature examines the profitability of technical trading rules. The central idea underlying this research is that if the FX market is efficient, one should not be able to use publicly available information to predict future changes in exchange rates and hence to make an abnormal (risk-adjusted) profit.1 In particular, popular technical trading strategies, which use current and past price and volume ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Technical Trading-Rule Profitability, Data Snooping, and Reality Check: Evidence from the Foreign Exchange Market 2007-01-22 text/html en-US Technical Trading-Rule Profitability, Data Snooping, and Reality Check: Evidence from the Foreign Exchange Market 2007-01-22 2007 TWO Project MUSE® 160676 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209044 <p></p> Especially in countries having adopted some definition of price stability as the main focus of their monetary policy, policymakers are seeking to possess advance knowledge of forthcoming price changes. Business analysts trying to project real returns on investment in financial assets are also keen to learn about the evolution of inflation. As price aggregates tend to exhibit a substantial degree of inertia, price dynamics at short horizons is of particular interest.1 Despite its central importance for policy and business, however, characterizing the nature of short-term variation in aggregate price changes has been a daunting task for macroeconomists. While a vast amount of evidence has been amassed to address the ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Linking Individual and Aggregate Price Changes 2007-01-22 text/html en-US Linking Individual and Aggregate Price Changes 2007-01-22 2007 TWO Project MUSE® 171703 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209045 <p></p> John Maynard Keynes suggested that monetary policy should regulate the supply of money so that &#x22;the index number of prices will never move far from a fixed point.&#x22;1 Except for Sweden in the thirties,2 no central banks have followed up Keynes&#39; idea and adopted price-level targeting, although inflation targeting has become a popular monetary regime. The difference between price-level and inflation targeting is that the former implies a stationary price level, while the latter implies complete price-level drift and thus a non-stationary price level.Price-level targeting has been subject of renewed interest in recent years due to theoretical results characterizing optimal policy under commitment. In the canonical ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Inflation Inertia and the Optimal Hybrid Inflation/Price-Level Target 2007-01-22 text/html en-US Inflation Inertia and the Optimal Hybrid Inflation/Price-Level Target 2007-01-22 2007 TWO Project MUSE® 36566 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209046 <p></p> Cities are a standard unit of observation in urban economics, just as countries are a norm in international economics. The distribution of city sizes has been extensively studied. A couple of striking empirical regularities characterize the distribution of cities within a country. The rank (by size) of a city is almost perfectly inversely related to its size (at least for the largest cities), a stylized fact known as &#x22;Zipf&#39;s Law.&#x22; It is also well known that growth in cities seems to be approximately proportionate, independent of city size; this is known as &#x22;Gibrat&#39;s Law.&#x22; In this short paper, I consider both of these well-known characteristics of city size distributions, and show that they work about as well when ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall Cities and Countries 2007-01-22 text/html en-US Cities and Countries 2007-01-22 2007 TWO Project MUSE® 93248 2026-05-12T00:00:00-05:00 2007-01-22 https://muse.jhu.edu/article/209047 <p></p> For some time now the Federal Open Market Committee (FOMC) has been implementing monetary policy by setting an explicit target for the federal funds rate. Surprisingly, the FOMC never formally announced that it had switched back to a funds rate targeting procedure, which it had used prior to the adoption of a nonborrowed reserves operating procedure in October 1979. The lack of a definitive announcement or acknowledgment that it was targeting the funds rate is puzzling. For example, on October 6, 1979, the FOMC formally announced &#x22;a change in the method used to conduct monetary policy to support the objective of containing growth of the monetary aggregates over the remainder of this year within ranges previously ... <a href="https://muse.jhu.edu/article/209047">Read More</a> Project MUSE® https://muse.jhu.edu/ 2026-05-12T00:00:00-05:00 https://muse.jhu.edu/journal/123/image/coversmall When Did the FOMC Begin Targeting the Federal Funds Rate? What the Verbatim Transcripts Tell Us 2007-01-22 text/html en-US When Did the FOMC Begin Targeting the Federal Funds Rate? What the Verbatim Transcripts Tell Us 2007-01-22 2007 TWO Project MUSE® 155877 2026-05-12T00:00:00-05:00 2007-01-22