[...]This article is organized as follows. In the next section, wediscuss the basics of deferred settlement systems, and in Section 3we describe the systems used in our simulations. In Section 4,we describe the performance metrics and results of the basicsimulations, and in Section 5 we conduct...

The Federal Reserve requires U.S. commercial banks andother depository institutions to hold a minimum level ofreserves in proportion to certain liabilities. On occasion, thecentral bank has reduced reserve requirements—such as in1990, when requirements on large time deposits were dropped,and...

Several authors have documented a reduced variability ofoutput and inflation in the United States since the beginningof the 1980s.1 In fact, a comparison of the 1980:1-2001:2 periodwith the two preceding decades shows that the standarddeviation of quarterly output growth has fallen 30...

Asset market values react to economic news and policychanges, and consumers react to changes in asset marketvalues. The consumption-wealth channel of monetary policyspells out this mechanism: changes in monetary policy affectasset values, which in turn affect consumer spending onnondurable goods...

[...]In the first half of the paper, we review the significantchanges in the housing finance system over the past thirty yearsand discuss the implications of these changes for the cost andavailability of mortgage credit. In the second half, we present atwo-part econometric analysis of the...

The volatility of real GDP growth in the United States hasfallen by half since the early 1980s relative to the priorpostwar experience.1 Inflation also stabilized around then(although only when compared with a shorter period ofvolatility in the 1970s). Some studies have argued that animprovement...

[...]This paper looks for evidence of both types of crediteffects—those that are endogenous to the monetarymechanism and those that are exogenous—using informationon banks’ commercial credit standards as a proxy for bankcredit availability. We compare results from an...

[...]This paper investigates whether the cyclical effects ofmonetary policy have been influenced by the secular growth insecuritization in recent decades. In particular, when the centralbank makes a specific monetary policy move—such asincreasing the overnight interbank rate by 50 basis...

[...]This article develops a stylized game-theoretical model toanalyze banks’ intraday liquidity management behavior in anRTGS environment. It analyzes the strategic incentives under Envision an economy with two identical banks using an RTGSsystem operated by the central bank to settle...

[...]This article explores in several ways the structure andvocabulary of emerging payments system risks and theirmitigation. We begin by recounting several incidents of fraudand losses associated with emerging payment methods. Wethen describe an economic framework for understanding riskcontrol...