INTEREST-RATES UNDER THE UNITED-STATES-NATIONAL-BANKING-SYSTEM

• 成果类型: Article
• 署名作者: CHAMP, B; WALLACE, N; WEBER, WE
• 署名单位: Federal Reserve System - USA; Fordham University; University of Miami; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(94)90023-X
• 发表日期: 1994
• 页码: 343-358
• 关键词: NATIONAL BANKING SYSTEM; Interest rates; bank notes

摘要

According to previous studies, the demand-liability feature of national bank notes did not present a problem for note-issuing banks because the nonbank public treated notes and other currency as perfect substitutes. However, that view, when combined with nonbindingness of the collateral restriction against note issue, itself an implication of the fact that some eligible collateral was not used for that purpose, implies that the safe short-term interest rate is pegged at the tax rate on note circulation. Since evidence on short-term interest rates is inconsistent with such a peg, that view must be rejected.