The banking industry has traditionally covered a large part of its operating costs by net interest earnings, based on the spread between deposit and lending rates.This reflects the common practice of underpricing various services provided to customers, especially depositors.The purpose of this...

We develop a theoretical framework aimed to model the pricing of electronic money (electronic cash cards) and the market domain in which it will be used.We first calculate the fee structures of electronic cash- and charge-card industries for the monopoly and competitive cases.We show that the...

The aim of the present analysis is to shed light on the question whether Central Banks should publish their macroeconomic forecasts, and what could possibly be gained in monetary policy if they did so.We show that disclosing the Central Bank's assessment of the prevailing inflationary pressures...

This paper investigates the market consequences of alliance formation among stock exchanges.These alliances enable brokers to match investors internationally at their local market, thereby eliminating the need for brokers to maintain memberships in foreign stock exchanges.We sort out the...

The paper investigates the existence and extent of economies of scale in depository and settlement systems.Evidence from 16 settlement institutions across different regions for the years 1993-2000 indicates the existence of significant economies of scale.The degree of such economies, however,...

We study the effect of the zero bound constraint of interest rates on international transmission of economic policy and supply shocks. After some preliminary analysis with a simple theoretical model, we apply a rich two-country simulation model to the problem.The model framework consists of...

Table of Contents: 1 Introduction 11 2 Price parameters of the deposit relationship 15 2.1 Dimensions of pricing 15 2.2 The tariff function 18 3 On the historical development of demand deposit pricing 22 3.1 The classical period of deposit pricing 22 3.2 The period of regulated banking 26 3.3...