Search Results

SORT BY: PREVIOUS / NEXT
Author:Wallace, Neil 

Working Paper
Identification and estimation of a model of hyperinflation with a continuum of \"sunspot\" equilibrium

This paper constructs a model with two structural equations: the Government budget constraint and a linear version of Cagan?s portfolio balance equation. The model contains a continuum of equilibria with ?sunspot equilibria.? Closed forms for the solutions are found. Even though there is a continuum of equilibria, the model is overidentified econometrically, so that the model restricts time series data on price levels and currency stocks. We describe how the free parameters of the model can be estimated, including some parameters that serve to index particular members of the continuum of ...
Working Papers , Paper 280

Working Paper
Resolving the National Banking System note-issue puzzle

Under the National Banking System, 1863-1914, national banks that deposited sufficient collateral could issue notes provided they paid a tax on notes in circulation: 1 percent per year before 1900 and 1/2 percent thereafter. Because note issue was far below the allowed maximum, an arbitrage argument predicts that short-term nominal interest rates should have been bounded above by the tax rate. They were not. That is the note-issue puzzle. Our resolution takes the form of a model in which notes play a role, but in which the profitability of note issue is not tied to anything that resembles a ...
Working Papers (Old Series) , Paper 0316

Working Paper
The role of independence in the Green-Lin Diamond-Dybvig model

Green and Lin study a version of the Diamond-Dybvig model with a finite number of agents, independence (independent determination of each agent?s type), and sequential service. For special preferences, they show that the ex ante first-best allocation is the unique equilibrium outcome of the model with private information about types. Via a simple argument, it is shown that uniqueness of the truth-telling equilibrium holds for general preferences, and, in particular, for a constrained-efficient allocation whether first-best or not. The crucial assumption is independence.
Working Papers (Old Series) , Paper 0615

Report
Open-market operations in a model of regulated, insured intermediaries

In ?The Inefficiency of Interest-Bearing National Debt,? (JPE, April 1979) we argued that private sector transaction costs are needed in order to explain interest on government debt. It follows that if the government?s transaction costs do not depend on its portfolio, then, barring special circumstances, an open-market purchase is deflationary and welfare improving. In this paper we show that this result can survive a potentially relevant special circumstance: reserve requirements which limit the size of insured intermediaries.
Staff Report , Paper 34

Journal Article
Another attempt to explain an illiquid banking system: the Diamond and Dybvig model with sequential service taken seriously

Quarterly Review , Volume 12 , Issue Fall , Pages 3-16

Journal Article
A shred of evidence on public acceptance of privately issued currency

Quarterly Review , Volume 9 , Issue Win

Journal Article
Resolving the national bank note paradox

During the 1882_1914 period, U.S. national banks could issue circulating notes backed by specified government securities. Earlier attempts to explain yields on those securities by costs of note issue discovered a paradox: yields were too high. We point out two previously ignored sources of costs: idle notes and note redemptions that were highly variable, thereby exacerbating the problem of managing reserves. We present data on idle notes and estimate, from partial data on redemptions, the uncertainty due to redemptions. We also present a semiannual time series of an upper bound on the average ...
Quarterly Review , Volume 16 , Issue Spr , Pages 13-21

Conference Paper
Search-theoretic models of international currency - commentary

Proceedings , Volume 78 , Issue May , Pages 136-138

Working Paper
Suspension and the financing of the Civil War: a critique of Newcomb and Mitchell

Working Papers , Paper 265

Journal Article
Why the Fed should consider holding Mo constant

Quarterly Review , Volume 1 , Issue Sum

FILTER BY year

FILTER BY Series

Quarterly Review 22 items

Staff Report 19 items

Working Papers 14 items

Proceedings 3 items

Working Papers (Old Series) 3 items

Review 1 items

show more (1)

FILTER BY Content Type

FILTER BY Jel Classification

E40 1 items

FILTER BY Keywords

PREVIOUS / NEXT