Search

The article presents comments on the results and methodology of the report "A Multivariate Time-Series Investigation of Annual Returns on Highest Grade Corporate Bonds," by Donald L. Tuttle and William L. Wilbur, included within the issue. The author asserts the ad-hoc nature of the report's equations and suggests further explanation and validation is needed of the correlation model selected.

The article presents comments on "Bank Regulation and Monetary Policy." The author states that deregulation has gained attention because competition in the financial sector have forced regulators and legislators to recognize limitations of existing regulations. The article explains why interest rate ceilings were removed and discusses deregulation and financial crises. Additional article topics include whether deregulation contributes to the overall instability of the financial system and the author states that asset deregulation is not needed to produce financial instability that affects the behavior of monetary policy.