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The Prime Rate and the Cost of Funds: Is the Prime Too High? - Review

B. W. Hafer investigates the economic forces underlying the prime lending rate. Hafer notes first that, since the early 1970s, the prime rate generally has varied with current credit market conditions: “As the competition for loanable funds and the cost of liability management have increased with the advent of numerous financial innovations, banks have become more sensitive to interest rate changes in establishing their lending rates.”

research.stlouisfed.org/.../1983/05/01/the-prime-rate-and-the-cost-of-funds-is-the-prime-too-high/

Are Monetarists an Endangered Species? - Review

Dallas S. Batten and Courtenay C. Stone investigate the alleged failure of monetarism. They point out that monetarism can be viewed in two ways: as a scientific theory about the impact of monetary pressures on the economy or as a diverse collection of normative propositions about how fast money should grow or what policy actions should be taken.

research.stlouisfed.org/.../publications/review/1983/05/01/are-monetarists-an-endangered-species/