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Journal Article
The changing role of reserve requirements in monetary policy
Journal Article
New estimates of the natural rate of unemployment
Journal Article
The natural rate and inflationary pressures
The natural rate of unemployment has become an important topic recently as the Federal Reserve has raised short-term interest rates in an attempt to keep the economy from overheating. The natural rate represents the lowest possible unemployment rate that is consistent with stable inflation. As the economy has approached its natural rate this year, the Federal Reserve has taken a series of timely policy actions. Weiner examines the close historical relationship between the natural rate and inflationary pressures and discusses near-term policy implications.> This article is an updated version ...
Journal Article
The role of community banks in the U.S. economy
The U.S. banking system is unusual in consisting not only of some very large banks but also a large number of relatively small community banks. This bifurcated banking system in the United States has served the economy well. Over time, with regulatory change and financial innovation, large banks have become complex organizations engaged in a wide range of activities. They provide a variety of services to their customers, but often rely on hard financial information, computer models, and centralized decision-making as the basis for conducting business. In contrast, small banks have focused ...
Working Paper
Nonbanks in the payments system
Nonbanks have always been a key component of the nation's payments system. In recent years, however, nonbanks have become even more prominent. This heightened visibility raises several questions. In which payments activities are nonbanks engaged? What roles do nonbanks play in specific payments types? What types of risk are potentially associated with nonbank participation? This paper begins to address these questions. Preliminary findings include: (1) Nonbanks are involved in a myriad of activities and roles, both in traditional and emerging payments types; (2) Nonbank business relationships ...
Journal Article
Maintaining central bank credibility
Central banks around the world potentially face a skeptical public when they announce a commitment to controlling inflation. Some economists have argued that, to enhance credibility, central banks should adopt monetary growth rules or other institutional arrangements. Yet it appears there are no costless solutions to the credibility problem.
Working Paper
Competition and credit and debit card interchange fees: a cross-country analysis
This paper seeks to provide a bridge between the theoretical and empirical literatures on interchange fees. Specifically, the paper confronts theory with practice by asking, to what extent do existing models of interchange fees match up with actual interchange fee practices in various countries? For each of four countries?Australia, the Netherlands, the UK, and the United States?models that ?best? fit the competitive and institutional features of that country?s payment card market are identified, and the implications of those model are compared to actual practices. Along what competitive ...
Journal Article
Union COLA's on the decline
Journal Article
Electronic payments in the U.S. economy : an overview
Business publications are filled these days with stories about the digital or electronic economy. One routinely reads about e-commerce, e-business, and e-banking. Terms such as e-mail and e-tickets have entered the common lexicon. Some analysts have gone so far as to proclaim that the U.S. economy is being fundamentally transformed and is entering a "new age" of unparalleled growth and opportunity.> While such a view is open to debate, clearly some major, potentially far-ranging, changes are under way. The most visible and most dramatic involve e-commerce. A growing amount of economic ...