Growing dissatisfaction with the record of discretionary monetary policy in the United States in the past decade has led to interest in alternative monetary arrangements…
Growing dissatisfaction with the record of discretionary monetary policy in the United States in the past decade has led to interest in alternative monetary arrangements to restore price level and real output stability, and to allow the economy to grow to its potential, unfettered by macro instability. Several arrangements have come to the fore. These include: (1) a return to the classical gold standard—fixing the dollar price of gold and allowing the money supply to be governed by movements in the nation's monetary gold stock; (2) the Friedman (1960) rule—constraining the monetary authorities to establish and maintain a steady and known growth rate of the fiduciary money supply; (3) Irving Fisher's (1920) compensated dollar scheme—altering the official price of gold and hence the value of the monetary gold stock to stabilize some measure of the price level.
How well does the “Law of One Price” operate across countries? Interest in this question has been stimulated by the Monetary Aproach to the Balance of Payments (Frenkel…
How well does the “Law of One Price” operate across countries? Interest in this question has been stimulated by the Monetary Aproach to the Balance of Payments (Frenkel and Johnson (1975)) which uses the law to determine the price of traded goods in open economies.
In this paper we investigate the relationship between loose monetary policy, low inflation, and easy bank credit and house price booms.
Using a panel of 11 OECD countries from 1920 to 2011 we estimate a panel VAR in order to identify loose monetary policy shocks, low inflation shocks, bank credit shocks, and house price shocks.
We show that during boom periods there is a heightened impact of all three “policy” shocks with the bank credit shock playing an important role. However, when we look at individual house price boom episodes the cause of the price boom is not so clear. The evidence suggests that the house price boom that occurred in the United States during the 1990s and 2000s was not due to easy bank credit.
Shocks from the shadow banking system are not separately identified. These are incorporated into the fourth “catch-all” shock.
Our evidence on housing price booms that expansionary monetary policy is a significant trigger buttresses the case for central banks following stable monetary policies based on well understood and credible rules.
Originality/value of paper
This paper uses historical evidence to evaluate the relative importance of three main causes of house price booms. Our results bring into question the commonly held view that loose bank credit was to blame for the U.S. house price bubble of the later 1990s.
Banking and finance during the past several decades have become “re‐internationalized,” not simply “internationalized.” This becomes clear when we compare the…
Banking and finance during the past several decades have become “re‐internationalized,” not simply “internationalized.” This becomes clear when we compare the institutional features of banking and finance today with those in the early part of this century, the last period in which both had a substantial international dimension. It is further apparent in historical data that are analyzed in the paper: cross‐country spreads between real interest rates over the long period 1835 to 1990, and figures for gross foreign assets available for a number of major countries at key points in time from 1885 to 1994. The paper concludes by discussing the factors responsible for the changes that have occurred in banking and finance during the past several decades.
The existence of a stable relation between the demand for real cash balances and some few variables relating it to real economic activity is one of the cornerstones of the…
The existence of a stable relation between the demand for real cash balances and some few variables relating it to real economic activity is one of the cornerstones of the monetarist approach. Such a relation permits us not only to analyze the impact of monetary change on economic activity but, since it is stable, it also has important predictive content. A better insight is then possible on the analysis of the effects of monetary policy. On this basis, it has been shown that money really matters and that the money supply is, with regard to economic stability, a powerful but also a dangerous weapon when heedlessly used by governments.
This paper investigates currency substitution along the U.S.‐Canada border with specific reference to the use of the Canadian dollar in the United States. In our study…
This paper investigates currency substitution along the U.S.‐Canada border with specific reference to the use of the Canadian dollar in the United States. In our study sites of Bellingham, WA; Buffalo, NY; Burlington, VT; Houlton, ME; Minot, ND; Port Huron, MI; and Sault Ste. Marie, MI, we found that 70.1 percent of 364 sampled U.S. located retail establishments accepted the Canadian dollar during the study period of July 2003. Accepting firms did so at an average premium of 7.7 percent per transaction with a concomitant average increase in stores sales of 3.0 percent. The significant variables at the firm‐level in the decision to accept/reject the Canadian dollar are firm experience in the community; ownership model (local, regional, national or international); geographic location; cross‐border operations; and retail category.
The purpose of this article is to give an overview of scholarly monographs on rock music from 1980 to the present. It aims to provide an overview to the literature for…
The purpose of this article is to give an overview of scholarly monographs on rock music from 1980 to the present. It aims to provide an overview to the literature for practical purposes of collection development as well as giving the reader insight into key issues and trends related to a interdisciplinary topic that attracts scholars from many disciplines in the humanities and social sciences.
This bibliographic essay, focusing on works related to American culture and of a general nature, includes an overview and historical background; a discussion of how music and ethnomusiciological scholars approach the topic; geographic approaches; literature on four key icons (Elvis, Dylan, Springsteen, and Madonna); American studies; subcultures and genres; other methodologies; and concludes by discussing notable recent works.
The scholarly literature on rock incorporates a wide variety of approaches and methodologies. Many music‐related scholars appropriate methodology from other disciplines and some non‐music‐related scholars use the formalistic analysis of music scholars. Authenticity is a major theme in the literature on rock.
This essay covers the widest range of monographs on the topic, providing insight into not only the key scholars but also the diversity of approaches to the topic. The historical approach to the literature gives the reader a sense of how the academic discourse on rock has evolved. This essay is of interest to librarians, scholars of rock music, and others concerned with how American scholarship in the humanities and the social sciences has grown since the advent of cultural studies.
The progressive limits to rights mobilization have become starkly apparent in the past two decades. No new suspect classes have been forthcoming from the Supreme Court…
The progressive limits to rights mobilization have become starkly apparent in the past two decades. No new suspect classes have been forthcoming from the Supreme Court since 1977 despite continued demands for legal recognition by lesbians and gays, indigenous peoples and others interested in expanding civil rights doctrine. Public tolerance for civil rights measures has likewise dried up. Since the 1960s, referenda on civil rights have halted affirmative action programs, limited school busing and housing discrimination protections, promoted English-only laws, limited AIDS policies, and ended the judicial recognition of same-sex marriage, among other issues. Nearly 80% of these referenda have had outcomes realizing the Madisonian fear of “majority tyranny”1 and signaling the Nietzschean dread of a politics of resentment (Brown, 1995, p. 214; Connolly, 1991, p. 64).