Journal ArticleDOI
Liquidity and interest rates
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TLDR
The authors analyzes a series of models in which money is required for asset transactions as well as for transactions in goods and characterizes these effects under various assumptions about the nature of securities traded and the behavior of shocks.About:
This article is published in Journal of Economic Theory.The article was published on 1990-04-01. It has received 691 citations till now. The article focuses on the topics: Market liquidity & Interest rate.read more
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The Effects of Monetary Policy Shocks: Some Evidence from the Flow of Funds
TL;DR: The authors used the Flow of Funds accounts to assess the impact of a monetary policy shock on the borrowing and lending activities of different sectors of the economy and found that contractionary monetary policy shocks are associated with a fall in nonborrowed reserves, total reserves, M1, the Federal Reserves' holdings of government securities and a rise in the federal funds rate.
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The Impact of Monetary Policy on Bank Balance Sheets
TL;DR: In this article, the authors used disaggregated data on bank balance sheets to provide a test of the lending view of monetary policy transmission and showed that the loan and security portfolios of large and small banks respond differentially to a contraction in monetary policy.
Journal ArticleDOI
The impact of monetary policy on bank balance sheets
Anil K. Kashyap,Jeremy C. Stein +1 more
TL;DR: In this paper, the authors used disaggregated data on bank balance sheets to provide a test of the lending view of monetary policy transmission and found that the empirical results are supportive of this view.
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Price Level Determinacy Without Control of a Monetary Aggregate
TL;DR: In this article, it was shown that the price level remains determinate even in the case of two kinds of radical money supply endogeneity, i.e., an interest rate peg by the central bank and a free banking regime, that are commonly supposed to imply loss of control of price level.
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Financial factors in economic fluctuations
TL;DR: In this paper, the authors augment a standard monetary DSGE model to include a banking sector and financial markets, and find that agency problems in financial contracts, liquidity constraints facing banks and shocks that alter the perception of market risk and hit financial intermediation are prime determinants of economic fluctuations.
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ReportDOI
Do Stock Prices Move Too Much to be Justified by Subsequent Changes in Dividends
TL;DR: In this article, the authors developed the efficient markets model in Section I to clarify some theoretical questions that may arise in connection with the inequality, and some similar inequalities will be derived that put limits on the standard deviation of the innovation in price and the variance of the change in price.
Journal ArticleDOI
Indivisible labor and the business cycle
TL;DR: In this paper, a growth model with shocks to technology is studied, and it is shown that, unlike previous equilibrium models of the business cycle, this economy displays large fluctuations in hours worked and relatively small fluctuations in productivity.
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Stochastic Consumption, Risk Aversion, and the Temporal Behavior of Asset Returns
TL;DR: In this paper, the authors studied the time-series behavior of asset returns and aggregate consumption in a representative consumer model and imposing restrictions on preferences and the joint distribution of consumption and returns.