The widespread belief that one can read off the public's expectations of inflation from the yield differential between indexed and conventional bonds ignores the fact that indexed bonds are held largely by those who expect the most inflation. However, holding indexed bonds as a hedge against...

Approximately one-half of California's Unified School Districts give teachers a choice of receiving their annual salaries in 10 or 12 monthly payments. Intertemporal utility maximization à la Irving Fisher suggests that they should choose 10 payments and earn interest on their savings. But...

Recent behavior of velocity suggests that a stable monetary growth rate rule could have dangerous consequences. Hence this paper suggests a compromise-adjusting the money growth rate only in accordance with past changes in velocity. This preserves most of the benefits of a stable monetary growth...

Congress, late in 1991, enacted a banking reform measure that (i) authorizes $70 billion of additional FDIC funding, (ii) enhances bank regulation and supervision, and (Hi) adopts a "trip wire" system for increasingly severe regulation based on a bank's capital. Congress rejected a number of key...

There may not be much outright plagiarism or cheating in economics research, argues this economist, but there are grounds to conclude that a bias exists in statistical research. Does this amount to dishonesty? The author tackles the issue.

It has become almost a stylized fact that after financial crises, economic activity recovers without a rebound in credit. We investigate the relationship between credit and economic activity over the business cycle. In a simple model we show that a rebound in the flow of credit has closer...

Im Zuge der Aufwertung des Euro gegenüber wichtigen Handelswährungen, insbesondere dem US-Dollar, ist die Europäische Zentralbank vielfach aufgefordert worden zu intervenieren, um dem Aufstieg des Euro Einhalt zu gebieten und so den befürchteten Wachstums- und Beschäftigungsverlusten...

Sollte die Finanzaufsicht reformiert und gestärkt werden? Thomas Mayer, Chefvolkswirt, Europa, bei der Deutschen Bank, London, beantwortet diese Frage klar mit einem Ja. Eine bessere Finanzaufsicht bedeute jedoch nicht dichtere Regulierungen und mehr Regulatoren, sondern klare...