Payments Settlement under Limited Enforcement: Private versus Public Systems
AbstractWhat are the benefits provided by a payment system? What are the tradeoffs in public versus private payment systems and in restricted versus open payments arrangements? Modern payment systems encompass a variety of institutional designs with varying degrees of counterparty protection. We develop a framework which allows for an examination and comparison of payment systems, and specification of conditions leading to their adoption. We relate these conditions to the design of present large-value payment systems (Fedwire, CHIPS, Target, etc.)
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 North American Winter Meetings with number 13.
Date of creation: 11 Aug 2004
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Payment systems; limited enforcement; settlement risk;
Other versions of this item:
- Charles M. Kahn & William Roberds, 2002. "Payments settlement under limited enforcement: Private versus public systems," Working Paper, Federal Reserve Bank of Atlanta 2002-33, Federal Reserve Bank of Atlanta.
- E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
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