Showing papers in "Journal of Monetary Economics in 1979"

TL;DR: The rationality of a person's choice does not depend upon how much he knows, but only upon how well he reasons from whatever information he has, however incomplete, provided that we face up to our circumstances and do the best we can.

TL;DR: In this paper, a theory of the natural or equilibrium rate of unemployment is built around a model of the duration of employment, where most unemployed workers became unemployed because their previous jobs came to an end; only a minority are on temporary layoff or have just entered the labor force.

TL;DR: In this article, the authors examined the conduct and the effects of Swedish monetary policy in the 1930's and found that the monetary policy specifically the devaluation of the Swedish currency in 1931 and the subsequent program of price stabilization had a major effect on the aggregative behavior of Swedish economy.

TL;DR: In this article, a component approach to forecasting the money multiplier was developed, and it was found that time series models of the individual money multiplier components yield forecasts of the multiplier which are more accurate than those produced by other regression methods or time series methods applied to the multiplier itself.

TL;DR: In this article, the implicit interest rate is estimated from two different sources and it is shown that implicit interest appears to be about one-half of what a competitive rate would be in the absence of the prohibition against explicit interest.

TL;DR: In this article, the authors examined three measures of expectations derived from observed data from the market for foreign exchange and used them to estimate the demand for money during the early 1920's German hyperinflation.

TL;DR: In this paper, the authors investigated inflation as a tax on cash balances using the optimal commodity tax framework and showed that a zero tax or even a rate of deflation greater than the pre-tax rate of interest may be optimal.

TL;DR: In this article, the authors discuss models that can be used to control the money stock in the short run, starting from the definition of the money multiplier, and discuss a model for controlling money stock growth.

TL;DR: In this article, the authors present an institutional and empirical description of domestic exchange in the United States between 1840 and 1918, within the context of the structural evolution of the payments mechanism, and isolate the welfare implications of improvements in the payments system, in particular, the importance of the diminution in exchange rates for inter-regional integration of the short-term money markets.

TL;DR: In this paper, the authors deal with the derivation of aggregate price and output adjustment models from the micro-foundations of individual firms' behavior under monopolistic competition and uncertain demand.

TL;DR: In this article, the authors investigated the effects of introducing the following two alterations into a multimarket, partial information, rational expectations model: (1) individuals in any market may sample currently more prices than just the current price on their own market; (2) they choose the amount of their current information so as to minimize the sum of the costs of getting information and of being off their full information demand and supply curves.

TL;DR: In this article, a method of policy simulation with an existing macroeconometric model under the maintained assumption that individuals form their expectations rationally was proposed, and applied to versions of the St Louis Federal Reserve model and the Federal Reserve-MIT-Penn (FMP) model to simulate the effects of different constant money growth policies.

TL;DR: This article provided empirical evidence that increases in government debt held by the public do increase the demand for money; therefore, the fiscal policy simulations of the large macroeconometric models may yield biased conclusions concerning the crowding out effect.

TL;DR: In this paper, the adaptive-is-rational hypothesis was rejected for the Germany case and a two-step procedure was proposed to estimate the important money demand elasticity in hyperinflation.

TL;DR: The authors empirically test the hypothesis that real money balances act as an input-augmenting factor in a constant elasticity of substitution production framework, and show that real balances can significantly reduce the bias in technical change caused by the monetization of a barter economy.

TL;DR: The authorities can sterilize the balance of payments in both the short and long run if domestic capital markets are not fully integrated with those of the rest of the world as discussed by the authors, and the degree of sterilization which the authorities employ is an important determinant of the economy's response to any outside changes.

TL;DR: In this article, the issue of bank credit expansion when reserve and deposit flows are stochastic was addressed, and it was found that if deposit flows were normally distributed, the distribution of new reserves among banks does not affect credit expansion.

TL;DR: In this paper, the authors demonstrate that the behavior of the market for this financial asset is characterized by a dichotomy which has been induced by the Federal Reserve's administration of Regulation Q ceilings on offering rates on CDs.

TL;DR: This paper argued that perfect foresight and stability are incompatible and that an alternative trade-balance approach is free of this incompatibility and also illustrates that two competing theories of the exchange rate are consistent.

TL;DR: In this article, the authors present a specification of the expected price level (and, consequently, of all future expected inflation rates) which is not subject to those shortcomings and which seems to reflect in a better manner the basic economic idea behind the scheme.

TL;DR: In this paper, the authors present a more appropriate test which indicates that, in fact, there is a highly significant difference in the variance of inflation rates within and among countries, and that the test which led Hans Genberg to the widely cited finding that the variance in inflation rates across OECD countries under fixed exchange rates was not significantly different from the variance on average in U.S. cities.

TL;DR: In this article, the authors consider government intervention in the capital market by selling indexed bonds and buying non-indexed bonds of equal value, and make a distinction between the case where the government intervenes in an existing market and the case when it creates a new market for indexed bonds.

TL;DR: This paper examined how the results of the Barro-Grossman model are modified when inventories are added to their framework and found that the demand for labor becomes sensitive to the real wage even when there exists general excess supply.

TL;DR: In this article, the authors estimate the parameters of a model that allows for both short and long-term effects of rate variability on dealer positions and spreads and show that most of the adverse effects of variability are temporary.