Year: 1983
Author: Tobin, James
Credit and Capital Markets – Kredit und Kapital, Vol. 16 (1983), Iss. 2 : pp. 155–171
Abstract
Financial Structure and Monetary Rules
The structure of the American banking and financial system is changing rapidly and radically, because of new technology, institutional innovation, and deregulation. In particular, legal ceilings on deposit interest rates are disappearing, even on checking accounts. Proposals to pay interest on bank reserves at a rate indexed to the central bank discount rate, and in turn to index the discount rate to market rates, may be adopted. These changes alter the properties of the monetary system, in response both to central bank operations and to non-policy shocks. A short-hand summary is that they make the Hicksian “LM” curve very steep. Different monetary rules distribute differently, among interest rates, output, and prices, the effects of various kinds of shocks. These distributions are significantly altered when the financial structure changes. Both the desirability of structural reforms and if they are adopted, the suitability of particular rules of monetary policy depend on these alterations in the properties of the system.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.16.2.155
Credit and Capital Markets – Kredit und Kapital, Vol. 16 (1983), Iss. 2 : pp. 155–171
Published online: 1983-02
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 17
Author Details
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Finanzinnovationen und die LM-Kurve
Franz, Hackl,
Credit and Capital Markets - Kredit und Kapital, Vol. 26 (1993), Iss. 3 P.362
https://doi.org/10.3790/ccm.26.3.362 [Citations: 0]
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Google Scholar -
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Google Scholar -
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Google Scholar -
Starr, R. (1982): “Variation in the Maturity Structure of Debt and Behavior. of the Monetary Aggregates: The Maturity Shift Hypothesis”, Univ. of California, San Diego Discussion Paper #82 - 9, March.
Google Scholar -
Akerlof, G. and Ross Milbourne (1979): “Irving Fisher on His Head: Part I”, Quarterly Journal of Economics, Vol. 93, No. 2, pp. 169 -187.
Google Scholar -
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Google Scholar -
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Google Scholar -
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Google Scholar