THE LIQUIDITY TRAP-that awkward condition in which monetary policy loses its grip because the nominal interest rate is essentially zero, in which the quantity of money becomes irrelevant because money and bonds are essentially perfect substitutes-played a central role in the early years of macroeconomics as a discipline. John Hicks, in introducing both the… (More)
The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Banks of San Francisco and Atlanta or the Board of Governors of the Federal Reserve System. Abstract This paper studies the role of credit in the business cycle, with a focus on private credit overhang. Based on a… (More)
Monetary Trends reports a great many findings—53 are enumerated in the introduc-tion—but paramount is the stability of the demand for money in the US and Britain over the past century. The money stock controls money income. This proposition more than anything else is the point of their painstaking investigation. Friedman and Schwartz argue against what… (More)
, we find that wars have not always been good for the market. This article begins by reviewing relevant issues concerning the links between monetary policy and asset prices. The following section presents a monthly time series index of U.S. equity prices spanning two hundred years and identifies boom episodes. Subsequent sections present a descriptive… (More)
and seminar participants at the Bank of England and Federal Reserve Board for helpful comments and conversations. All errors remain our responsibility.
This paper provides an early diagnosis of the financial crisis in Asia, focussing on the empirical record in the lead-up to the crisis. The main goal is to emphasize the role of financial panic as an essential element of the Asian crisis. At the core of the crisis were large-scale foreign capital inflows into financial systems that became vulnerable to… (More)
The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Bank of Finland. * Abstract In autumn of 2007 Britain experienced its first bank run of any significance since the reign of Queen Victoria. The run was on a bank called Northern Rock. This was extraordinary, for Britain had been free of such episodes… (More)
The purpose of this article is to report the results of additional construct validity testing of the Schwartz Cancer Fatigue Scale. Latent variable modeling was used to determine the best fit of the data to the model. Testing with a heterogeneous sample (n = 303) did not support the proposed model. Using exploratory techniques a six-item, two-factor scale… (More)