Discussion Paper
Turnover in Fedwire Funds Has Dropped Considerably since the Crisis, but It's Okay
Abstract: The Fedwire Funds Service is a large-value payment system, operated by the Federal Reserve Bank of New York, that facilitates more than $3 trillion a day in payments. Turnover in Fedwire Funds, the value of payments made for every dollar of liquidity provided, has dropped nearly 75 percent since the crisis. Should we be concerned? In this post, we explain why turnover has dropped so much and argue that it is, in fact, a good thing.
Keywords: Fedwire Funds; Crisis; Liquidity Provision;
JEL Classification: G2;
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2014-08-25
Number: 20140825