RDP 8402: Financial Innovation Bibliography Monetary and Banking Theory

ALIBER, R.Z. “Exchange Risk and Investor Demand for External Currency Deposits”. Journal of Money, Credit and Banking, vol. 7, 1975, pp.161–179.

ALIBER, R.Z. “The Impact of External Markets for National Currencies on Central Bank Reservice”. In H.G. Johnson and A.K. Swoboda (eds.). The Economics of Common Currencies. Allen Unwin, London, 1973.

BARNETT, W.A. “The User Cost of Money”. Economic Letters, vol. 2, 1978, pp.145–149.

BENSTON, G.J. “Interest Payments on Demand Deposits and Bank Investment Behaviour”. Journal of Political Economy, vol. 72, pp.431–449.

BENSTON, G.J. “The Optimal Banking Structure”. Journal of Bank Research, Winter 1973, pp.220–237.

BENSTON, G.J. and C.W. SMITH. “A Transactions Cost Approach to the Theory of Financial Intermediation”. Journal of Finance, vol. 31, 1976, pp.215–231.

BEN-ZION V. and E. KARNI. “The Utility of Money and the Transactions Demand for Cash”. Canadian Journal of Economics, vol. 9, 1976, pp.165–171.

BIRNBAUM, E.A. “The Growth of Financial Intermediaries as a Factor in the Effectiveness of Monetary Policy”. I.M.F. Staff Papers, vol. 8, 1958, pp.384–426.

BLACK, F. “Banking and Interest Rates in a World Without Money”. Journal of Bank Research, Autumn 1970, pp.9–20.

BLACK, F. “Bank Funds Management in an Efficient Market”. Journal of Financial Economics, vol. 2, 1975, pp.323–339.

BOSWORTH, B. and J.S. DUESENBERRY. “A Flow of Funds Model and its Implications”. Issues in Federal Debt Management. (Conference Series No. 10). Federal

BOYD, J.M. Household Demand for Checking Account Money; the Impact of Bank Pricing”. Journal of Monetary Economics, vol. 2, 1976, pp.81–98.

BRAINARD, W.C. “Financial Intermediaries and a Theory of Monetary Control”. Yale Economic Essays, vol. 4, No. 2, 1964, pp.431–482.

BREEN, W. “An Exploratory Econometric Model of Financial Markets”. Journal of Financial and Quantitative Analysis, vol. 4, 1969, pp.233–269.

BREEN, W. “A Note on the Demand for Cash Balances and the Stock Adjustment Hypothesis”. International Economic Review, February 1971, pp.147–151.

BRUNNER, K. and A.H. MELTZER. “The Place of Financial Intermediaries in the Transmission of Monetary Policy”. American Economic Review, vol. 53, 1963, pp.372–382.

BRUNNER, K. and A.H. MELTZER. “The Uses of Money: Money in the Theory of an Exchange Economy”. American Economic Review, vol. 81, 1971, pp.784–805.

BRYAN, W.R. and W.T. CARLETON. “Short-Run Adjustments of an Individual Bank”. Econometrica, vol. 35, 1967, pp.321–347.

BRYANT, J. and N. WALLACE. “The Inefficiency of Interest Bearing National Debt”. Journal of Political Economy, vol. 87, 1979, pp.365–381.

BUTKIEWICZ, J.L. “Outside Wealth, The Demand for Money and the Crowding Out Effect”. Journal of Monetary Economics, vol. 5, 1979, pp.249–258.

CHANDLER, L.V. “Monopolistic Elements in Commercial Banking”. Journal of Political Economy, vol. 46, 1938, pp.1–22.

CHEN, A.H.Y. “Effects of Purchasing Power Risk on Portfolio Demand for Money”. Journal of Financial and Quantitative Analysis, vol. 14, 1979, pp.243–254.

CLOWER, R.W. “The Transactions Theory of the Demand for Money: a Reconsideration”. Journal of Political Economy, vol. 86, 1978, pp.449–460.

CRAMP, A.B. “Financial Intermediaries and Monetary Policy”. Economica, vol. 29, 1962, pp.143–151.

CUKIERMAN, A. “The Horizontal Integration of the Banking Firm, Credit Rationing and Monetary Policy”. Review of Economic Studies, vol. 45, 1978, pp.165–178.

CULBERTSON, J.M. “Intermediaries and Monetary Theory: A Criticism of the Gurley-Shaw Theory”. American Economic Review, vol. 48, 1958, pp.119–131.

DESHMUKH, S.D., S.I. GREENBAUM and G. KANATAS. “Interest Rate Uncertainty and the Financial Intermediary's Choice of Exposure”. Journal of Finance, vol. 38, No. 1, 1983, pp.141–147.

DONOVAN, D.J. “Modelling the Demand for Liquid Assets: An Application to Canada”. I.M.F. Staff Papers, No. 25, 1978, pp.676–704.

EDEN, B. “On the Unit of Account Function of Money: The Use of Local Currency When Less Inflationary Currencies are Available”. Economic Inquiry, vol. 21, No. 3, 1983, pp.261–373.

FAMA, E.F. “Banking in the Theory of Finance”. Journal of Monetary Economics, vol. 6, 1980, pp.39–57.

FAMA, E.F. “Banking in the Theory of Finance”. “Financial Intermediation and Price Level Control”. Journal of Monetary Economics, vol. 12, 1983, pp.7–28.

FEIGE, E.L. The Demand for Liquid Assets: A Temporal Cross-Section Analysis. Prentice-Hall, Englewood Cliffs, New Jersey, 1964.

FELDSTEIN, M and 0. ECKSTEIN (1970). “The Fundamental Determinants of the Interest Rate”. Review of Economics and Statistics, vol. 52, 1970, pp.363–375.

FLOOD, R.P. and P.M. GARBER. “An Economic Theory of Monetary Reform”. Journal of Political Economy, vol. 88, 1980, pp.24–58.

FISCHER, S. “A Framework for Monetary and Banking Analysis”. Economic Journal Conference Papers, 1982, pp.1–17.

FRANKEL, A. and J. MARQUARDT. “Payments Systems: Theory and Policy”. (International Finance Discussion Paper No. 216). Washington, February 1983.

FREEDMAN, C. “Micro Theory of International Financial Intermediation”. American Economic Review, vol. 77, 1972, pp.172–179.

FRIEDMAN, M. and A.J. SCHWARTZ. “Money and Business Cycles”. In M. Friedman (ed.). “The Optimum Quantity of Money and Other Essays”, Chicago University Press, Chicago, 1969, pp.189–236.

FRIEDMAN, M. and A.J. SCHWARTZ. “The Definition of Money: Net Wealth and Neutrality as Criteria”. Journal of Money, Credit and Banking, vol. 1, 1969, pp.1–14.

FRIEDMAN, I.S. “The Role of Private Banks in Stabilization Programs”. In W.R. Cline, (ed.). Economic Stabilization in Developing Countries. Brookings Institution, Washington, 1981.

GAMBINO, A. “Is the Distinction Between Inside Money and Outside Money Fruitful?”. Banca Nazionale del Lavoro Quarterly Review, vol. 24, 1971, pp.193–196.

GOLDFIELD, S.M. Commercial Bank Behaviour and Economic Activity. North-Holland, Amsterdam, 1966.

GRAMLEY, L. and S.J. CHASE, Jr. “Time Deposits in Monetary Analysis”. Federal Reserve Bulletin, October 1965, pp.1380–1406.

GRAMM, W.P. “Laissez-Faire and the Optimum Quantity of Money”. Economic Inquiry, vol. 13, 1975, pp.125–132.

GRANDMONT, J.M. & G. LAROQUE. “On Money and Banking”. Review of Economic Studies, vol. 42, 1975, pp.207–236.

GREENBAUM, S.I. and C.F. HAYWOOD. “Secular Change in the Financial Services Industry”. Journal of Money, Credit and Banking, vol. 3, 1971, pp.571–589. Comments by W.G. Dewald, P.A. Frost and CM. Sprenkle.

GREENFIELD, R.L. and L.B. YEAGER. “A Laissez-Faire Approach to Monetary Stability”. Journal of Money, Credit and Banking, vol. 15, No. 3, 1983, pp.302–315.

GURLEY, J.G. and E.S. SHAW. “Financial Aspects of Economic Development”. American Economic Review, vol. 45, 1955, pp.515–538.

GURLEY, J.G. and E.S. SHAW. “Financial Intermediaries and the Saving-Investment Process”. Journal of Finance, vol. 11, 1956, pp.257–276.

GURLEY, J.G. and E.S. SHAW. “The Growth of Debt and Money in the United States 1800–1950: A Suggested Interpretation”. Review of Economics and Statistics, vol. 39, 1957, pp.250–262.

GURLEY, J.G. and E.S. SHAW. “Intermediaries and Monetary Theory: A Criticism of the Gurley-Shaw Theory – A Reply”. American Economic Review, vol. 48, 1958, pp.132–138.

GUTTENTAG, J.M. and R. LINDSAY. “The Uniqueness of Commercial Banks”. Journal of Political Economy, vol. 76, 1968, pp.991–1014.

HALL, R.E. “Optimal Fiduciary Monetary System”. Journal of Monetary Economics, vol. 12, No. 1, 1983, pp.33–51.

HAMBURGER, M.J. “Household Demand for Financial Assets”. Econometrica, vol. 35, 1968, pp.97–118.

HEINEVETTER, B. “Liquidity Creation in the Euromarkets”, Journal of Money, Credit and Banking, vol. 11, 1979, pp.231–234.

HENDESHOTT, P.H. “Financial Disintermediation in a Macroeconomic Framework”. Journal of Finance, vol. 26, 1971, pp.843–856.

HESS, A.C. “Household Response to Money Rain: Real and Portfolio Balance Effects Reconsidered”. Journal of Monetary Economics, vol. 3, 1977, pp.103–112.

HIGGINS, B. “Velocity: Money's Second Dimension”. Federal Reserve Bank of Kansas City Economic Review, June, 1978, pp.15–31.

HOLLAND, R.C. “The Federal Reserve Discount Mechanism as an Instrument for Dealing with Bank Market Imperfections”. Journal of Money, Credit and Banking, vol. 20, 1970, pp.138–146.

JONES, R.A. “The Origin and Development of Media of Exchange”. Journal of Political Economy, vol. 84, No. 4, 1971, pp.757–775.

KING, R.G. “On the Economics of Private Money”. Journal of Monetary Economics, vol. 12, 1983, pp.127–158.

KLEIN, M.A. “A Theory of the Banking Firm”. Journal of Money, Credit and Banking, vol. 3, 1971, Part 1, pp.205–218.

LEWIN, P. “The Essential Role of Money in the Economy”. South African Journal of Economics, vol. 40, 1972, pp.268–274.

MARTY, A.L. “Gurley and Shaw on Money in a Theory of Finance”, Journal of Political Economy, vol. 69, 1961, pp.56–62.

MARTY, A.L. “A Note on the Welfare Cost of Money Creation”. Journal of Monetary Economics, vol. 2, No. 1, 1976, pp.121–124.

McKENZIE, G. “Financial Intermediation and the Effectiveness of Monetary Policy”. (Discussion Papers in Economics and Econometrics No. 8319), University of Southampton, Southhampton, 1983.

MEIGS, A.J. Money Matters: Economics, Markets, Politics. Harper and Row, New York, 1972.

MELTZER, A.H. “Money, Intermediation and Growth”. Journal of Economic Literature, vol. 7, No. 1, 1969, pp.27–56.

MITCHELL, D.W. “Explicit and Implicit Demand Deposit Interest: Substitutes or Complements from the Bank's Point of View”. Journal of Money, Credit and Banking, vol. 11, 1979, pp.182–191.

MOOSA, S.A. “Dynamic Portfolio – Balance Behaviour of Time Deposits and ‘Money’“. Journal of Finance, vol. 32, No. 3, 1977, pp.709–717.

MORGAN, E.V. “The Essential Qualities of Money”. Manchester School of Economic and Social Studies, vol. 37, No. 3, 1969, pp.237–248.

MUSSA, M. “The Welfare Cost of Inflation and the Role of Money as a Unit of Account”. Journal of Money, Credit and Banking, vol. 9, No. 2, 1977, pp.276–286.

NEWLYN, W.T. “The Definition of Money: Net Wealth and Neutrality as Criteria”. Journal of Money, Credit and Banking, vol. 4, No. 1, 1972, pp.118–120.

O'LEARY, J.J. “The Institutionalization of the Savings-Investment Process and Current Economic Theory”. American Economic Review, Papers and Proceedings, vol. 44, 1954, pp.455–470.

OSTROY, J.M. and R.M. STARR. “Money and the Decentralization of Exchange”. Econometrica, vol. 42, No. 6, 1974, pp.1093–1113.

PARKIN, M.J. “Discount House Portfolio and Debt Selection”, Review of Economic Studies, vol. 37, 1970, pp.469–497.

PARKIN, M.J., R.J. COOPER, J.R. HENDERSON & M.K. DANES. “An Integrated Model of Consumption, Investment and Portfolio Decisions”. In Papers in Monetary Economics II. Reserve Bank of Australia, Sydney, 1975.

PATINKIN, D. “Financial Intermediaries and Monetary Policy”. American Economic Review, vol. 51, 1961, pp.109–111.

PERLMAN, M. “The Rates of Money in an Economy and the Optimum Quantity of Money”. Economica, vol. 38, 1971, pp.233–252.

PESEK, B.P. “Bank's Supply Function and the Equilibrium Quantity of Money”. Canadian Journal of Economics, vol. 3, 1970, pp.357–385.

PESEK, B.P.“Equilibrium Level of Transaction Services of Money”. Journal of Finance, vol. 28, No. 3, 1973, pp.647–660.

PHILIPS, L. “The Demand for Leisure and Money”. Econometrica, vol. 46, 1978, pp.1025–1044.

PHILLIPS, A. “Evidence on Concentration in Banking Markets and Interest Rates”. Federal Reserve Bulletin, vol. 53, No. 6, 1967, pp.916–926.

PRINGLE, J.J. “A Theory of a Banking Firm: Comment”. Journal of Money, Credit and Banking, vol. 5, 1973, pp.990–996.

PRYOR, F.L. “The Origins of Money”, Journal of Money, Credit and Banking, vol. 9, No. 3, 1977, pp.391–409.

PYLE, D.H. “On the Theory of Financial Intermediation”, Journal of Finance, vol. 26, 1971, pp.737–747.

ROLNICK, A.J. and W.E. WEBER. “New Evidence on the Free Banking Era”. American Economic Review, vol. 73, No. 5, 1982, pp.1080–1091. “

RUFFIN, R.J. “Free Reserves, Vault Cash and the Portfolio Behaviour of Banks”. Journal of Political Economy, vol. 76, 1967, pp.889–892.

RUSSELL, T. The Economics of Bank Credit Cards. Praeger Publishers, New York, 1975.

SANTOMERO, A.M. “The Role of Transactions Costs and Rates of Return on the Demand Deposit Decisions”. Journal of Monetary Economics, vol. 5, No. 3, 1979, pp.343–364.

SANTOMERO, A.M. and J.J. SEIGEL. “A General Equilibrium Money and Banking Paradigm”. Journal of Finance, vol. 37, No. 2, 1982, pp. 357–369”:

SAVING, T.R. “The Value of Time and Economics of Scale in the Demand for Cash Balances – Comment”. Journal of Money, Credit and Banking, vol. 6, No. 1, 1974, pp.122–124.

SEARLEY, C.W. and J.T. LINDLEY (1977). “Inputs, Outputs and a Theory of Production and Cost of Depository Financial Institutions”. Journal of Finance, vol. 32, 1977, pp.1251–1266.

SHELBY, D. “Some Implications of the Growth of Financial Intermediaries”. Journal of Finance, vol. 13, 1958, pp.539–540.

SMITH, P.F. “Optimum Rate on Time Deposits”. Journal of Finance, vol. 17, 1962, pp.622–633.

SPINDT, P.A. and V. TARHAN. “Liquidity Structure Adjustment Behaviour of Large Money Center Banks”. Journal of Money, Credit and Banking, vol. 12, 1980, pp.198–208.

STARTZ, R. “Implicit Interest on Demand Deposits”. Journal of Monetary Economics, vol. 5, No. 4, 1979, pp.515–534.

STILLSON, R.T. “An Analysis of Information and Transactions Services in Financial Institutions”. Journal of Money, Credit and Banking, vol. 6, 1974, pp.517–535.

TAUB, B. “Private Competitive Fiat Money”. (Discussion Paper No. 120). University of Virginia, 1982.

TINK, S.M. “The Economics of Liquidity Services”. Quarterly Journal of Economics, vol. 86, 1972, pp.79–83.

TOBIN, J. “Commercial Banks as Creators of Money”. In D Carson (ed.). Banking and Monetary Studies, Richard, D. Irwin, Homewood, Illinois, 1978, pp.408–419. Also in D.D. Hester and J. Tobin (eds.). Financial Markets and Economic Activity, Cowles Foundation Monograph 21. John Wiley and Sons, New York, 1967, pp.1–11.

TOBIN, J. “Notes on Optimal Monetary Growth”. Journal of Political Economy, July/August, 1968, pp.833–859.

TOBIN, J. and W.C. BRAINARD. “Financial Intermediaries and the Effectiveness of Monetary Controls”. American Economic Review, vol. 53, 1963, pp.383–400.

TOWEY, R.E. “Money Creation and the Theory of the Banking Firm”. Journal of Finance, vol. 29, No. 1, 1974, pp.57–72.

TULLOCK, G. “Competing Monies”. Journal of Money, Credit and Banking, vol. 7, No. 4, 1975, pp.491–497.

WILSON, L.S. “Two Aspects of the Payment of Interest on Money”. Manchester School of Economics and Social Studies, vol. 42, 1974, pp.283–289.

WOOD, J.H. “Financial Intermediaries and Monetary Control: An Example”. Journal of Monetary Economics, vol. 8, No. 2, 1981, pp.145–163.

YEAGER, L.B. “Essential Properties of the Medium of Exchange”. Kyklos, vol. 21, No. 1, 1968, pp.45–68.

YEATS, A.J. “An Analysis of New Bank Growth”. Journal of Business, vol. 48, 1975, pp.199–203.

i) Economies of Scale and Scope

BENSTON, G.J. “Economies of Scale and Marginal Costs of Banking Operations”. National Banking Review, vol. 2, 1965, pp.507–549.

BENSTON, G.J. “Economies of Scale in Financial Institutions”. Journal of Money, Credit and Banking, vol. 4, 1972, pp.312–341.

BORTS, G.H. “Economies of Scale of Financial Institutions: Some Comments”. Journal of Money, Credit and Banking, vol. 4, 1972, p.419–421.

CAMERON, N. “Economies of Scale in Financial Institutions: A Comment”. Journal of Monetary

COOK, T.Q. and J.G. DUFFIELD. “Average Costs of Money Market Funds”. Economic Review, Federal Reserve Bank of Richmond, July/August 1979, pp.32–39.

DANIEL, D.L., W.A. LONGBRAKE, and N.B. MURPHY. “The Effect of Technology on Bank Economies of Scale”. Journal of Finance, vol. 28, No. 1, 1973, pp.131–146.

DANIEL, O. “Holding the Costs of Money Transmission”. Bankers' Magazine, vol. 225, No. 1647, 1981, pp.13.

DAVIS, K.T. and M.K. LEWIS. “Economies of Scale in Financial Institutions”. Australian Financial System Inquiry, Commissioned Studies and Selected Papers, Part 1. AGPS, Canberra, 1982.

GREENBAUM, S.I. “Costs and Production in Commercial Banking”. Federal Reserve Bank of Kansas City Monthly Review, March/April 1966.

HALPERN, P.J. and G.F. MATHEWSON. “Economies of Scale in Financial Institutions: A General Model Applied to Insurance”. Journal of Monetary Economics, vol. 1, 1975, pp.203–220.

HENSLEY, R.J. “Scale Economies in Financial Enterprises”. Journal of Political Economy, vol. 66, 1958, pp.389–398.

HORVITZ, P.M. “Economies of Scale in Banking”. Private Financial Institutions, Englewood Cliffs, New York, Prentice-Hall Inc., 1963, pp.1–54, 290–318.

HOUSTON, D.B. and R.M. SIMON. “Economies of Scale in Financial Institutions: A Study in Life Insurance”. Econometrica, vol. 38, No. 6, 1970, pp.856–864.

HUMPHREY, D.B. “Scale Economies at Automated Clearing Houses”. Journal of Bank Research, vol. 11, 1981, pp.71–81.

JACOBS, D.P. “Business Loan Costs and Bank Market Structure: an Empirical Estimate of their Relations”. National Bureau of Economic Research, Occasional Paper No. 115, New York, 1971.

JAMES, J.A. “Banking Market Structure, Risk, and the Pattern of Local Interest Rates in the US, 1893–1911”. Review of Economics and Statistics, vol. 58, 1976, pp.453–462.

LIPIS, A.H. “Costs of the Current U.S. Payments System”. Magazine of Bank Administration, vol. 55, 1978, pp.27–31.

LONGBRAKE, W.A. “Computers and the Costs of Producing Various Types of Bank Services”. Journal of Business, vol. 46, 1973, pp.363–381.

LONGBRAKE, W.A. “Computers and the Cost of Producing Various Types of Banking Services”. Journal of Business, vol. 47, No. 3, 1974, pp.363–381.

LONGBRAKE, W.A. The Impact of Commercial Bank Size and Legal Form of Organization on Operating Efficiency. Federal Deposit Insurance Corporation, Washington, 1973.

LONGBRAKE, W.A. and J.A. HASLEM “Productive Efficiency in Commercial Banking”. Journal of Money, Credit and Banking, August 1975, pp.317–330.

MEYER, P.A. “Price Discriminaton, Regional Loan Rates, and the Structure of the Banking Industry”. Journal of Finance, vol. 22, 1967, pp.37–48.

MITCHELL, G.W. “Effects of Automation on the Structure and Function of Banking”. American Economic Review, Papers and Proceedings, vol. 56, No. 2, 1966, pp.159–166.

MULLINEAUX, D.J. “Economies of Scale of Financial Institutions: A Comment”. Journal of Monetary Economics, vol. 1, 1975, pp.233–249.

MURPHY, N.B. “A Re-Estimation of the Benston, Bell-Murphy Cost Functions for a Larger Sample With Greater Size and Geographic Dispersion”. Journal of Financial and Quantitative Analysis, vol. 7, 1972, pp.2097–2105.

POWERS, J.A. “Branch Versus Unit Banking: Bank Output and Cost Economies”. Southern Economic Journal, vol. 36, 1969, pp.153–164.

REVELL, J.R.S. Costs and Margins in Banking: An International Survey. OECD, Paris, 1980.

SMITH, T. “Research on Banking Structure and Performance”. Federal Reserve Bulletin, vol. 52, April, 1966, pp.488–498.

SULLIVAN, A.C. and R.W. JOHNSON. “Value Pricing of Bank Card Services”. (Working Paper No. 34). Credit Research Centre, Kranert School of Management, Purdue University, 1980.

WALKER, D.A. “Economies of Scale in Electronic Funds Transfer Systems”, Journal of Banking and Finance, vol. 2, 1978, pp.65–78.

WALKER, D.S. “An Analysis of EFTS Activity Levels, Costs, and Structure in the United States”. Journal of Bank Research, vol. 7, 1977, pp.266–276.