Papers

There is NO requirement for you to read these papers. For the most part I would actually discourage you from reading the details of the models; much of the discussion will be beyond the scope of this class. I would encourage you, however, to look at the introductions and conclusions sections. We cover the highlights of these models in reduced form, which are usually well discussed in more general terms at the beginning and end of papers. I will also post here other papers I cover and any other reading material I think is relevant.

The links to papers are actually links to JSTOR (which all of you have access to as UMN students).

Textbook Papers

Freeman, S. 1985. "Transaction Costs and the Optimal Quantity of Money." Journal of Political Economy. Find it here. This corresponds to Chapter 7 in the book.

Diamond, D.W. 1984. "Financial Intermediation and Delegated Monitoring." Review of Economic Studies. Find it here. This corresponds to the Appendix of Chapter 7.

Romer, D. 1985. "Financial Intermediation, Reserve Requirements and Inside Money." Journal of Monetary Economics. Find it here. This corresponds to Chapter 8. This paper (and others the text cites) examine in detail ideas we briefly discuss, such as deposits being a function of interest rates offered [h(r), if you recall].

Freeman, S. and G. Huffman. 1991. "Inside Money, Output and Causality." International Economic Review. Find it here. This corresponds to Chapter 9.

Freeman, S. and J, Haslag. 1995. "Should Bank Reserves Pay Interest?" Economic Review, Federal Reserve Bank of Dallas. Find it here. This is the most accessible of citations for Chapter 10.

Diamond, D.W. and P.H. Dybvig. 1983. "Bank Runs, Deposit Insurance and Liquidity." Journal of Political Economy. Find it here. This corresponds to Chapter 12. Recall that my notes differ in some respects from the text's presentation of the material; I think Diamond and Dybvig is most closely related to what we studied.

Champ, B., B. Smith and S.D. Williamson. 1996. "Currency Elasticity and Banking Panics: Theory and Evidence" Canadian Journal of Economics. Find it here. This corresponds to Chapter 13 (Random Relocation model).

Bryant, J. and N. Wallace. 1984. "A Price Discrimination Analysis of Monetary Policy." Review of Economic Studies. Find it here. This corresponds to Chapter 14 (the first half).