1. COMMENTS ON THE PAPERS OF BLOCH AND OF GREENBAUM AND HAYWOOD.
- Author
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SPRENKLE, CASE M.
- Subjects
FINANCIAL institutions ,GOVERNMENT policy ,INTEREST rates ,TREASURY bills ,BANKING industry - Abstract
The author comments on articles by economics Greenbaum and Haywood (G&H) and Bloch concerning the major factors that must be considered in analyzing changes in the financial sector and their resulting impact on the economy. He states that G&H argue that demand for financial assets is dependent on standard variables, income, interest rates, and more. He suggests that G&H didn't delve far enough into government policy on the financial sector and states his belief that the introduction of large quantities of U.S. Treasury Bills is the most important financial innovation from 1940-70. He states that Bloch's view of the U.S. Federal Reserve's behavior is instructive, and said that while he doesn't question Bloch's analysis, he does question if the reasons are correct.
- Published
- 1971
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