#2006-052E "The Great Inflation and Early Disinflation in Japan and Germany"
by Edward Nelson
September 2006
Revised September 2007

This paper considers the Great Inflation of the 1970s in Japan and Germany. From 1975 onward, these countries had low inflation relative to other large economies. More...

PUBLISHED: International Journal of Central Banking, December 2007, 3(4), pp. 23-76

#2006-051A "When Do Stock Market Booms Occur? The Macroeconomic and Policy Environments of 20th Century Booms"
by Michael D. Bordo, and David C. Wheelock
September 2006

This paper studies the macroeconomic conditions and policy environments under which stock market booms occurred among ten developed countries during the 20th Century. More...

PUBLISHED: in Jeremy Atack, ed., The Origins and Development of Financial Markets and Institutions, Cambridge University Press

#2006-050A "Analysis of Panel Vector Error Correction Models Using Maximum Likelihood, the Bootstrap, and Canonical-Correlation Estimators"
by Richard G. Anderson, Hailong Qian, and Robert H. Rasche
August 2006

In this paper, we examine the use of Box-Tiao’s (1977) canonical correlation method as an alternative to likelihood-based inferences for vector error-correction models. More...

#2006-049A "Monetary Base"
by Richard G. Anderson
August 2006

This brief essay is a working draft of an article in preparation for the forthcoming International Encyclopedia of the Social Sciences, 2nd ed., examining the role of the monetary base in monetary economics and monetary policymaking. More...

PUBLISHED: in William A. Darity, Jr., ed., International Encyclopedia of the Social Sciences, February 2008, Macmillan Reference USA.

#2006-048C "Red Ink in the Rearview Mirror: Local Fiscal Conditions and the Issuance of Traffic Tickets"
by Thomas A. Garrett, and Gary A. Wagner
August 2006
Revised July 2007

Municipalities have revenue motives for enforcing traffic laws in addition to public safety motives because many traffic offenses are punished via fines and the issuing municipality often retains the revenue. More...

PUBLISHED: Journal of Law and Economics, February 2009, 52(1), pp. 71-90

#2006-047A "Does Aggregate Relative Risk Aversion Change Countercyclically over Time? Evidence from the Stock Market"
by Hui Guo, Zijun Wang, and Jian Yang
August 2006

Using a semiparametric estimation technique, we show that the risk-return tradeoff and the Sharpe ratio of the stock market increases monotonically with the consumption wealth ratio (CAY) across time. More...

#2006-046B "The Adaptive Markets Hypothesis: Evidence from the Foreign Exchange Market"
by Christopher J. Neely, Paul A. Weller, and Joshua M. Ulrich
August 2006
Revised March 2007

We analyze the intertemporal stability of excess returns to technical trading rules in the foreign exchange market by conducting true, out-of-sample tests on previously studied rules. More...

PUBLISHED: Journal of Financial and Quantitative Analysis, April 2009, 44(2), pp. 467-88

#2006-045C "Central Bank Authorities’ Beliefs about Foreign Exchange Intervention"
by Christopher J. Neely
July 2006
Revised April 2007

This paper presents the results of a survey of monetary authorities with respect to foreign exchange intervention. More...

PUBLISHED: Journal of International Money and Finance, February 2008, 27(1), pp. 1-25

#2006-044A "Corporate Response to Distress: Evidence from the Asian Financial Crisis"
by Mara Faccio, and Rajdeep Sengupta
July 2006

This paper provides a comprehensive examination of the ways in which companies respond to a country-wide crisis through the restructuring of their assets (through asset sales, mergers or liquidations) or liabilities. We find the restructuring of liabilities to be the most common type of response. More...

#2006-043A "Foreign Entry and Bank Competition"
by Rajdeep Sengupta
July 2006

Foreign entry and bank competition are modeled as the interaction between asymmetrically informed principals: the entrant uses collateral as a screening device to contest the incumbent's informational advantage. Both better information ex ante and stronger legal protection ex post are shown to facilitate the entry of low-cost outside competitors into credit markets. More...

PUBLISHED: Journal of Financial Economics, May 2007, 84(2), pp. 502-28