______________________________________________________________ It is well known that the Spanish Monarchy found out some problems in its monetary system. So far, almost all the studies have been concentrated in the billon problem and inflation. However, small and large silver coins had also problems to circulate together in Castile. Without small change, among other consequences, it was more di...

In this essay I argue that modern macroeconomic theory has fallen behind the practice of central banking. After briefly summarizing the current state of macro theory, I focus on what strikes me as the two most important developments in monetary policy in the last two decades – inflation targeting and dealing with financial crises. My analysis rejects the claims made by several authors to the ef...

Treasury bonds provide money-like services, while other bonds do not. These money-like services, which include safety and liquidity, are valued more during financial crises, reducing the substitutability of actual Treasuries and synthetic Treasuries—other types of bonds that yield the same cash flows. Large equilibrium yield spreads between actual and synthetic Treasuries result. During the rec...

This paper investigates the reasons customers use Internet banking (I-Banking) and whether the use differs across various customer demographics. The relationship between trust & loyalty and customer demographics was also analyzed. The results showed that customers of differing genders perceived different factors as important. “Checking account balance” and “Checking bank statements” were identi...