The Compatibility of Central Bank Price Rules with Financial Stability

Article Abstract:

Central banks maintain the soundness of the banking system, smooth interest rates as well as act as lender of last resort. This paper shows that when bank charters are revised so they can pursue some form of price stability, the financial stability which results is not fundamentally incompatible with it.

Banking industry, Services, Financial institution charters

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The long and short of money and prices: a market equilibrium approach

Article Abstract:

This paper introduces two modifications to the money demand models to estimate money and price behavior and finds more support for the existence of buffer stock relationships.

Analysis, Usage, Prices and rates, Money, Money supply, Money demand, Buffer stocks

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Why the Price Level Wanders Aimlessly

Article Abstract:

This study shows price level wanders over time without returning to a fixed base because of central banks smoothing of interest rates.

Inflation (Finance), Interest rates, Inflation (Economics)

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