Search Results
Journal Article
A deposit insurance puzzle
Working Paper
Deposit insurance, risk, and market power in banking
A fixed-rate deposit insurance system provides a moral hazard for excessive risk taking and is not viable absent regulation. Although the deposit insurance system appears to have worked remarkably well over most of its 50-year history, major problems began to appear in the early 1980s. This paper addresses the puzzle of why major problems began to arise in the early 1980s and not sooner. ; The hypothesis is that increases in competition caused bank charter values to decline, which, in turn, caused banks to- increase default risk through increases. in asset risk and reductions in capital. This ...
Journal Article
Deposit rate deregulation and the demand for transactions media
Working Paper
Rational expectations and the Fisher effect: implications of monetary regime shifts
This paper develops a simple rational expectations model of the inflation process that is used to test the Fisher effect. The model emphasizes the link between money and expected inflation, and hence the monetary regime followed by the central bank. The model is estimated with U.S. data over the 1953-1986 period. We find that instability in the observed Fisher effect is associated with monetary regime shifts, and that the forecastability of money under different money regimes is an important determinant of the extent to which the Fisher effect is statistically observable.
Conference Paper
Bank capital regulation in the 1980s: effective or ineffective?
Conference Paper
The search for financial stability: postscript
Working Paper
Does capital regulation affect bank risk-taking?
Journal Article
Competition for money market deposit accounts