An essay that considers the rapid transformation of payments systems as well as the challenges and opportunities facing its participants, including the Federal Reserve.

This paper develops a model of settlement system to study the endogenous structure of settlement networks, and the welfare consequences of clearing agent failure. The equilibrium degree of tiering is endogenously determined by the cost structure and the information structure. The degree of...

It is argued that for households below poverty line any expenditure on health is catastrophic as they are unable to attain the subsistence level of consumption. Thus, zero percent is taken as a threshold level to define catastrophic health expenditure and examine the impact of health insurance...

The author introduces a central counterparty (CCP) into a model of a repo market. Without the CCP, there exist multiple equilibria in the model. In one of the equilibria, a repo market emerges as bond dealers and cash investors choose to arrange repos in an over-the-counter bond market. In...

Since the financial crisis, attention has focused on central counterparties (CCPs) as a solution to systemic risk for a variety of financial markets, ranging from repurchase agreements and options to swaps. However, internationally accepted standards and the academic literature have left...