Some Aspects of Monetarism Circa 1970 - A View from 1994
Die Last der Staatsverschuldung
Stability Problems in Hyperinflation Models - Ein Kommentar
Arbitragefreier Gewinntransfer an den Finanzmärkten - Eine kritische Analyse
Lang, Günter and Welzel, Peter
Strukturschwäche oder X-Ineffizienz? Cost-Frontier-Analyse bayerischer Genossenschaftsbanken
Zur deutschen Position im internationalen Devisenhandel: Starke Währung, schwacher Standort
Insiderhandel - Ökonomische Analyse eines ordnungspolitischen Dilemmas (Kai Treske)
Fair, Donald E. and Raymond, Robert
The Competitiveness of Financial Institutions and Centres in Europe (Beate Reszat)
"Some Aspects of Monetarism Circa 1970 - A View from 1994"
Viewed from 1994, the monetarism of 1970 was not nearly as homogenous a body of doctrine as it seemed at the time. Three areas of difference between the doctrine' s leading proponents, Milton Friedman on the one hand and Karl Brunner and Allan Meltzer on the other, are now apparent. First: Brunner and Meltzer paid more attention to the role of credit markets than did Friedman; second Friedman's empiricism made him relatively uninterested in discussing issues raised by money's status as a social institution, a matter that Brunner and Meltzer frequently discussed; third: this second characteristic of Friedman's work led him to discuss the interaction of inflation and unemployment in terms that clearly prefigure the New-classical analysis of Robert E. Lucas, et al., while Brunner and Meltzer 's emphasis on the role of money as a means of coping with information and co-ordination problems led them to anticipate many of the insights of what is now called ,,New Keynesian" economics. Thus the monetarist literature of -years ago sheds important light upon modern debates.
"The Burden of the Public Debt"
This contribution is to show that - depending on the burden concept employed as well as on divergent assumptions - highly different burden effects may arise from (internal) public indebtedness. It is necessary to differentiate between what must be deemed (1) a real burden on the present or on future generations, (2) a burden on income and wealth and (3) a burden on individual income brackets as a result of changes in income distribution (this latter notion often being overlooked). It is definitely wrong to deem the public debt a burden on future generations in general. This need not be expected to be the case especially where crowding-out effects can be avoided through credit-financed additional demand in situations of underemployment. Tax-financed loan interest and redemption payments do, as a rule, not represent any real burden, although market participants may feel the weight of burdens on their levels of income and wealth. When borrowings are made, shifts in income distribution primarily favour profit income earners, whilst the opposite is likely to be the case with debt repayments.
"Stability Problems in Hyperinflation Models - A Comment"
The Zink-model endogenises the frequency of wage payments and analyses the implications for the dynamic behaviour of hyperinflation models. This comment shows how a slight modification of the Zink-model eliminates a shortcoming of traditional hyperinflation models: the high inflation equilibrium is stable, and, contrary to the literature, it has "correct" comparative statics, i.e. a higher money financed budget deficit leads to a higher equilibrium inflation rate.
"Arbitrage-Free Profit Transfers in Financial Markets - A Critical Analysis"
A model-like derivation of deterministic interest rate structure curves shows that the interest rate structure existing at a given moment includes an average expectation about future interest rate trends. This representative assessment of the entire money and capital markets and the expert knowledge at the base of such assessments may be used as indicative values in drawing up one's own interest rate forecasts.
Deterministic values without buying-/selling-rate differentials do, as a rule, not represent any quantities that can be realistically constructed, because they are applicable only in perfect markets. In practice, the relevant equilibrium discount factors and the equilibrium forward rates reflect a bank's selling and buying position.
Applying the aforementioned deliberations to the general investment and financing theories shows that the inseparability of investment and re-investment earnings, which is inevitable with the classical investment accounting method because of discretionary assumptions pertaining to future investment and borrowing rates, can be avoided with the market rate method. The present-value and the final-value concepts at the base of investment accounting systems employing the market interest rate method and the objective interest rates included in this method that pertain to future investments and borrowings are consistent and perfectly equal insofar as the benefits are concerned they suggest to exist.
Lang, Günter and Welzel, Peter
"Structural Disadvantages or X-Inefficiency? - A Cost Frontier Analysis for German Co-operative Banks"
Data from 764 German co-operative banks are used to estimate multi-product translog cost functions for the quartiles with the lowest and the highest average costs in the sample. Based on these cost function measures of a structural inefficiency, of X-inefficiency, and of technical and allocative inefficiencies are calculated. The results point to the considerable extent of cost inefficiency in particular. Given that economies of scale and scope turn out to be rather small, cost management seems to be more important for reducing costs than the merger and acquisition activities observed so frequently in this segment of German banking during recent years.