IDEAS home Printed from https://ideas.repec.org/p/fip/fedrwp/85-02.html
   My bibliography  Save this paper

Financial innovation in the United States -- background, current and prospects

Author

Listed:
  • Alfred Broaddus

Abstract

The purpose of this paper is to describe recent financial innovation in the United States, outline its principal implications with regard to (1) the structure and behavior of financial markets and (2) the conduct of monetary policy, and speculate on the likely character of further innovation in the near-term future. In the United States as elsewhere, financial innovation has been a continuous but uneven process, where the rate of innovation has varied substantially from one period to the next depending on a variety of circumstances.

Suggested Citation

  • Alfred Broaddus, 1985. "Financial innovation in the United States -- background, current and prospects," Working Paper 85-02, Federal Reserve Bank of Richmond.
  • Handle: RePEc:fip:fedrwp:85-02
    as

    Download full text from publisher

    File URL: http://www.richmondfed.org/publications/research/working_papers/1985/wp_85-2.cfm
    Download Restriction: no

    File URL: https://www.richmondfed.org/-/media/RichmondFedOrg/publications/research/working_papers/1985/pdf/wp85-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Niehans, Jurg, 1982. "Innovation in monetary policy : Challenge and response," Journal of Banking & Finance, Elsevier, vol. 6(1), pages 9-28, March.
    2. Lyle E. Gramley, 1982. "Financial innovation and monetary policy," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jul, pages 393-400.
    3. Ben-Horim, Moshe & Silber, William L., 1977. "Financial innovation : A linear programming approach," Journal of Banking & Finance, Elsevier, vol. 1(3), pages 277-296, November.
    4. William Poole, 1969. "Optimal choice of monetary policy instruments in a simple stochastic macro model," Special Studies Papers 2, Board of Governors of the Federal Reserve System (U.S.).
    5. Thomas F. Cargill and Gillian G. Garcia., 1980. "Deregulation and Monetary Control: Historical Perspective and Impact of the l980 Act," Research Program in Finance Working Papers 107, University of California at Berkeley.
    6. F. Ward McCarthy, 1984. "The evolution of the bank regulatory structure : a reappraisal," Economic Review, Federal Reserve Bank of Richmond, vol. 70(Mar), pages 3-21.
    7. Stephen M. Goldfeld, 1976. "The Case of the Missing Money," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(3), pages 683-740.
    8. William Poole, 1970. "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(2), pages 197-216.
    9. Greenbaum, Stuart I & Haywood, C F, 1971. "Secular Change in the Financial Services Industry," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 3(2), pages 571-589, May.
    10. Kane, Edward J, 1981. "Accelerating Inflation, Technological Innovation, and the Decreasing Effectiveness of Banking Regulation," Journal of Finance, American Finance Association, vol. 36(2), pages 355-367, May.
    11. Timothy Q. Cook & Jeremy G. Duffield, 1979. "Money market mutual funds : a reaction to government regulations or a lasting financial innovation?," Economic Review, Federal Reserve Bank of Richmond, vol. 65(Jul), pages 15-31.
    12. William A. Barnett & Edward Offenbacher & Paul A. Spindt, 1982. "Divisia monetary aggregates : compilation, data, and historical behavior," Staff Studies 116, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caprio, Gerard & Honohan, Patrick, 1990. "Monetary policy instruments for developing countries," Policy Research Working Paper Series 528, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alfred Broaddus, 1985. "Financial innovation in the United States - background, current status and prospects," Economic Review, Federal Reserve Bank of Richmond, vol. 71(Jan), pages 2-22.
    2. -, 1992. "CEPAL Review no.48," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    3. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    4. Alan S. Blinder, 2019. "What does Jerome Powell know that William McChesney Martin didn’t—and what role did academic research play in that?," Working Papers 259, Princeton University, Department of Economics, Center for Economic Policy Studies..
    5. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611.
    6. Martin Hellwig, 2019. "Target-Falle oder Empörungsfalle? – Zur deutschen Diskussion um die Europäische Währungsunion," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2019_05, Max Planck Institute for Research on Collective Goods.
    7. Alan S. Blinder, 2020. "What does Jerome Powell know that William McChesney Martin did not—And what role did academic research play in that?," Manchester School, University of Manchester, vol. 88(S1), pages 32-49, September.
    8. Hartwell, Christopher A & Szybisz, Martin Andres, 2021. "Corralling Expectations: The Role of Institutions in (Hyper)Inflation," MPRA Paper 105612, University Library of Munich, Germany.
    9. Duca, John V. & VanHoose, David D., 2004. "Recent developments in understanding the demand for money," Journal of Economics and Business, Elsevier, vol. 56(4), pages 247-272.
    10. Ivo Maes & Piet Clement, 2018. "Alexandre Lamfalussy and the monetary policy debates among central bankers during the Great Inflation," Working Paper Research 341, National Bank of Belgium.
    11. Ball, Laurence, 2012. "Short-run money demand," Journal of Monetary Economics, Elsevier, vol. 59(7), pages 622-633.
    12. Benjamin M. Friedman, 1988. "Lessons On Monetary Policy From The 1980's," NBER Working Papers 2551, National Bureau of Economic Research, Inc.
    13. Emel Siklar & Ilyas Siklar, 2021. "Is There a Change in the Money Demand Stability in Turkey? A Nonlinear Approach," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 7(2), pages 28-42, 06-2021.
    14. Soldatos, Gerasimos T. & Zikos, Spyros, 2000. "Money, «Laissez-Faire» and the Underground Economy," MPRA Paper 57628, University Library of Munich, Germany.
    15. Kui-Wai Li, 2013. "The US monetary performance prior to the 2008 crisis," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3450-3461, August.
    16. Hwang, Chiun-Lin, 1989. "Optimal monetary policy in an open macroeconomic model with rational expectation," ISU General Staff Papers 1989010108000010197, Iowa State University, Department of Economics.
    17. Ireland, Peter N., 2003. "Endogenous money or sticky prices?," Journal of Monetary Economics, Elsevier, vol. 50(8), pages 1623-1648, November.
    18. Fair, Ray C., 1988. "Optimal choice of monetary policy instruments in a macroeconometric model," Journal of Monetary Economics, Elsevier, vol. 22(2), pages 301-315, September.
    19. Rajesh Singh & Chetan Subramanian, 2008. "The optimal choice of monetary policy instruments in a small open economy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(1), pages 105-137, February.
    20. Sutherland, Alan, 1995. "Monetary and real shocks and the optimal target zone," European Economic Review, Elsevier, vol. 39(1), pages 161-172, January.

    More about this item

    Keywords

    Financial institutions; Banks and banking;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedrwp:85-02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Pascasio (email available below). General contact details of provider: https://edirc.repec.org/data/frbrius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.