R. Alton Gilbert and Mack Ott examine the reasons for the unusual pattern of business loans at large commercial banks during the current economic expansion. The authors find that, both before and after the first half of 1984, business loans were growing at rates similar to those for comparable periods in earlier economic expansions.
Daniel L. Thornton briefly reviews the nature of the three standard dynamic models of money demand adjustment. The author points out that these specifications are not statistically comparable.
Richard G. Sheehan offers some evidence on the extent to which the Federal Reserve has altered monetary policy in response to federal deficits. The relationships between the deficit, the money stock and interest rates depend on the nature of the deficit and the targeting procedures used by the Federal Reserve.
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