The Economics of Large-value Payments and Settlement: Theory and Policy Issues for Central BanksMark Manning, Erlend Nier, Jochen Schanz Central banks have over the past few years devoted considerable resource to the study of the economics of payments. In parallel, this field has begun to establish itself as a new subject for scholarly research, drawing in academic students and researchers. To date, however, there has been little attempt to draw together the key insights gained from this growing body of research. This volume seeks to offer just such a synthesis. It charts the frontier of our knowledge to date and puts it in the context of a comprehensive overview of the policy issues faced by central banks in this sphere. In particular, it explores central banks' roles in payment systems; the risks on which central banks focus in their oversight activities; and the challenges central banks face as the payments and settlement landscape evolves. The economics of payments is a multi-disciplinary field, taking in branches of economics such as monetary theory, search theory, game theory and industrial organisation. It also draws on techniques from network theory and makes extensive use of simulation studies to model complex interactions between payment system members. For each of the topics covered, this volume highlights some of the most influential works in the literature. The volume also draws heavily on empirical insights, in particular offering an historical context to central banks' involvement in payment systems. |
Other editions - View all
The Economics of Large-value Payments and Settlement: Theory and Policy ... Mark Manning,Erlend Nier,Jochen Schanz No preview available - 2009 |
The Economics of Large-value Payments and Settlement: Theory and Policy ... Mark Manning,Erlend Nier,Jochen Schanz No preview available - 2009 |
Common terms and phrases
arising arrangements balance Bank B1 Bank of England bank's bilateral bilateral netting business risk cash central banks central counterparty central-bank money CHAPS Chapter clearing and settlement clearinghouse collateral Continuous Linked Settlement CPSS credit exposures credit risk currency customer banks debit default delay disruption DNS systems Economic ensure Eurosystem example exchange externalities failure Federal Reserve Fedwire financial markets financial stability foreign-exchange settlement risk function funds hybrid impact incentive increase infrastructure providers innovation inside money intervention intraday credit intraday liquidity large-value payment systems liquidity management liquidity needs liquidity recycling liquidity risk margin market failures multilateral network externalities obligations operational risk operational shock opportunity cost optimal outage overdrafts oversight participants payment and settlement payment instructions payment services positions potential reduce Reserve Bank resilience risk in payment role RTGS system securities settlement system settle settlement bank settlement risk simulation systemic risk TARGET2 tiering trade transfer typically