Students of U.S. banking history typically hold that the check collection industry was excessively costly prior to 1915 and that the Fed's subsequent entry into check clearing improved efficiency. The authors propose an alternative view based on the economics of network communications...

The payment system is a communications industry in which Federal Reserve Banks, in their check collection activities, provide communication services. The history of government intervention in other communications industries offers lessons for the Fed in its efforts at payment system innovation....

The Federal Reserve competes with private providers in markets for payment services. The Fed's pricing behavior in these markets should be guided by the goal of efficiency in the provision and distribution of services. The notion of sustainable pricing provides a framework for pursuing that goal

It's proven fairly difficult to fine-tune the relationship between changes in inflation and changes in the path of real activity.

Federal government debt held by the public reached 67.7 percent of gross domestic product in 2011, and trends point to large budget deficits for many years to come. In this essay, economics writer Renee Haltom and research director John Weinberg explore the implications for monetary policy if...

The debt of the U.S. government is at historically high levels, but how do we know whether debt levels are worrisome? This Economic Brief argues that the current fiscal position is not sustainable. Though financial markets seem unconcerned, for the time being, about U.S. fiscal health, as...

Federal government debt held by the public reached 67.7 percent of gross domestic product in 2011 and trends point to large budget deficits for many years to come. In this essay, Renee Haltom and John Weinberg explore the implications for monetary policy if the United States ever approached its...