We have performed local spin-density calculations for an fee (100) Ag
substrate covered by 1 to 16 monolayers (ML) of Pd. We find that thin
films of Pd are magnetic with a moment of the order of 0.3 mu(B) excep
t for films of 1-2 ML and 5-7 ML where magnetism is completely suppres
sed. We present a physically transparent explanation of this behavior
in terms of the Stoner picture and magnetic quantum-well states.