A thorough empirical evaluation of the role that recent banking sector distress has played in the slowdown of the credit and money aggregates will be undertaken. The research involves examining cross-sectional data at the state and bank level, prior to, during, and after the official quarters of the 1990 recession. The results of this study will have important implications for the role of the banking system in the economy, which in turn will have implications for how best to regulate banks without unduly inhibiting them. In addition, a better understanding of the role that banking sector problems have played in the sluggish money growth will help to shed light on the appropriate role of the aggregates in the monetary policy process. Interactive activities at the host institution include: teaching one to two masters level classes in monetary economics, participating in the weekly monetary workshop, having informal lunch meetings with female graduate students, and conducting workshops for undergraduate women to encourage them to pursue careers in economics. This project furthers VPW program objectives which are (1) to provide opportunities for women to advance their careers in engineering and in the disciplines of science supported by NSF and (2) to encourage women to pursue careers in science and engineering by providing greater visibility for women scientists and engineers employed in industry, government, and academic institutions. By encouraging the participation of women in science, it is valuable investment in the Nation's future scientific vitality.
