Settlement Risk under Gross and Net Settlement (2003)
Kahn, Charles M., McAndrews, James J., Roberds, William.
Journal of Money, Credit, and Banking - Volume 35, Number 4, August 2003
Charles Kahn, James Mcandrews, William Roberds
In this paper, we consider the costs and benefits of transactions privacy. In the environment we consider, privacy is the concealment of potentially useful information, but concealment also...
Payment Intermediation and the Origins of Banking (2000)
Scott Freeman, Joseph Haslag, Bruce Smith, Warren Weber, James Mcandrews, ...
: The medieval banks of continental Europe facilitated trade by serving as payment intermediaries. Depositors commonly would pay one another by transferring bank balances with the aid of overdraft...
Settlement Risk under Gross and Net Settlement (2000)
Charles M. Kahn, James Mcandrews, William Roberds
: Previous comparative analyses of gross and net settlement have focused on the credit risk of the central counterparty in net settlement arrangements and on the incentives for participants to alter...
Real-Time Gross Settlement and the Costs of Immediacy (1999)
David Humphrey, David Marshall, Stacey Schreft, Bruce Smith, David Van Hoose, ...
: Using a neoclassical monetary model, we investigate the welfare cost of a payment system that operates as a real-time gross settlement (RTGS) system. We illustrate how the cost of such systems does...
The Impact of Fraud on New Methods of Retail Payment (1999)
This article explores the potential impact of fraud on new forms of retail payment such as electronic cash and stored-value cards. These new payments media can increase economic efficiency by...
William Roberds, Charles H. Whiteman
Numerous studies have documented a "predictability smile" in the postwar term structure of interest rates: spreads between long rates and short rates predict subsequent movements in short rates...
Payment System Settlement and Bank Incentives (1997)
Charles M. Kahn, William Roberds, Anthony M. Santomero
: In this paper we consider the relative merits of net versus gross settlement of interbank payments. Net settlement economizes on the costs of holding non-interest-bearing reserves, but increases...
Models of policy under stochastic replanning
This paper considers a policy environment in which policy is not set by a single policymaker, but by a sequence of policymaking administrations. Administration turnover is determined by a simple...
Solution of linear-quadratic- Gaussian dynamic games using variational methods
Methods are presented for solving a certain class of rational expectations models, principally those that arise from dynamic games. The methods allow for numerical solution using spectral...
The quantitative significance of the Lucas critique
Preston J. Miller, William Roberds
Doan, Litterman, and Sims (DLS) have suggested using conditional forecasts to do policy analysis with Bayesian vector autoregression (BVAR) models. Their method seems to violate the Lucas critique,...
Monetary targeting in a dynamic macro model
The consequences of a straightforward monetary targeting scheme are examined for a simple dynamic macro model. The notion of “targeting” used is the strategic one introduced by Rogoff (1985)....
On the role of bank coalitions in the provision of liquidity
Charles M. Kahn, William Roberds
Bank liquidity ; Clearinghouses (Banking)
The Big Problem of Large Bills: The Bank of Amsterdam and the Origins of Central Banking
William Roberds, Stephen Quinn
Central banking, commodity money, debasement
The impact of fraud on new methods of retail payment
Currency fraud (counterfeiting), check fraud, and credit card fraud are serious problems, costing the U.S. economy billions of dollars each year. But with each of these traditional payments methods,...
Are on-line currencies virtual banknotes?
Stephen F. Quinn, William Roberds
The history of money is marked by innovations that have expanded the role of "inside money"-money created by the private sector. For instance, the past few years have seen the development of several...
Forecasting and modeling the U.S. economy in 1986-88
William Roberds, Richard M. Todd
Economic conditions - United States ; Forecasting ; Econometric models
How little we know about deficit policy effects
Preston J. Miller, William Roberds
We use a simple model to show why previous empirical studies of budget policy effects are flawed. Due to an identification problem, those studies' findings can be shown to be consistent with policies...
Stephen Quinn, William Roberds
The Bank of Amsterdam, founded in 1609, was the first public bank to offer accounts not directly convertible to coin. As such, it can be described as the first true central bank. The debut of central...
Monetary aggregates as monetary targets: a statistical investigation
Charles H. Whiteman, William Roberds
Monetary policy - United States
Budget constraints and time-series evidence on consumption: comment
Budget ; Time-series analysis
Another hole in the ozone layer: changes in FOMC operating procedure and the term structure
William Roberds, David Runkle, Charles H. Whiteman
Open market operations ; Vector autoregression
Towards the systematic measurement of systemic risk
Electronic funds transfers ; Payment systems
On the efficiency of cash settlement
Charles M. Kahn, William Roberds
This paper investigates the question of why banks almost always settle payments in cash as opposed to debt. Our model suggests that adverse selection with respect to the quality of bank assets may be...
Payment system settlement and bank incentives
Charles M. Kahn, William Roberds
In this paper we consider the relative merits of net versus gross settlement of interbank payments. Net settlement economizes on the costs of holding non-interest-bearing reserves but increases moral...
William Roberds, Charles H. Whiteman
Recent studies have documented the existence of a "predictability smile" in the term structure of interest rates: spreads between long maturity rates and short rates predict subsequent movements in...
A general equilibrium analysis of check float
James McAndrews, William Roberds
Households and businesses in the United States prefer to use check payment over less costly, electronic means of payment. Earlier studies have focused on check "float," that is, the time lag between...
Demandable debt as a means of payment: banknotes versus checks
Charles M. Kahn, William Roberds
We examine the question of whether transactable forms of privately issued, demandable debt are better used as "banknotes" or "checks." The distinction between the two is that a check must be redeemed...
Real-time gross settlement and the costs of immediacy
Charles M. Kahn, William Roberds
Using a neoclassical monetary model, we investigate the welfare cost of a payment system that operates as a real-time gross settlement (RTGS) system. We illustrate how the cost of such systems does...
Payment intermediation and the origins of banking
James McAndrews, William Roberds
The medieval banks of continental Europe facilitated trade by serving as payment intermediaries. Depositors commonly would pay one another by transferring bank balances with the aid of overdraft...
Settlement risk under gross and net settlement
Charles M. Kahn, James McAndrews, William Roberds
Previous comparative analyses of gross and net settlement have focused on the credit risk of the central counterparty in net settlement arrangements and on the incentives for participants to alter...
The CLS Bank: a solution to the risks of international payments settlement?
Charles M. Kahn, William Roberds
Foreign exchange transactions are subject to a unique type of settlement risk. This risk ultimately stems from the difficulty of coordinating separate settlements in two different currencies....
A theory of transactions privacy
Charles M. Kahn, James McAndrews, William Roberds
In this paper, we consider the costs and benefits of transactions privacy. In the environment we consider, privacy is the concealment of potentially useful information, but concealment also...
Payments settlement under limited enforcement: Private versus public systems
Charles M. Kahn, William Roberds
What 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...
Charles M. Kahn, James McAndrews, William Roberds
An extensive literature in monetary theory has emphasized the role of money as a record-keeping device. Money assumes this role in situations where using credit would be too costly, and some might...
The big problem of large bills: the Bank of Amsterdam and the origins of central banking
Stephen Quinn, William Roberds
This paper outlines a model of the first true central bank, the Bank of Amsterdam, founded in 1609. Employing a variant of the Freeman (1996) model of money and payments, we first analyze the...
Charles M. Kahn, William Roberds
The quintessential crime of the information age is identity theft, the malicious use of personal identifying data. In this paper we model “identity” and its use in credit transactions. Various...
Credit and the no-surcharge rule
A controversial aspect of payment cards has been the “no-surcharge rule.” This rule, which is part of the contract between the card provider and a merchant, states that the merchant cannot charge...
Forecast accuracy and the performance of economic policy: is there a connection?
Forecasting ; Economic policy
Money and the economy: puzzles from the 1980's experience
Monetary policy ; Money ; Velocity of money
What hath the Fed wrought? Interest rate smoothing in theory and practice
Monetary policy - United States ; Interest rates ; Open market operations
Review essay on Edge City: Life on the New Frontier(1991) by Joel Garreau
Cities and towns ; Books - Reviews
Electronic funds transfers ; Fedwire
Changes in payments technology and the welfare cost of inflation
Monetary policy ; Payment systems ; Bank reserves
Review essay on "Privatopia" and the Public Good by Evan McKenzie, 1994
In Privatopia, Evan McKenzie documents the history and legal structure of common interest developments, a form of residential community organization. McKenzie also looks at possible explanations for...
Financial crises and the payments system: lessons from the National Banking Era
Since the Great Depression, the Fed has historically intervened during potential financial crises to ensure that financial market participants were provided with the liquidity necessary to complete...
What's really new about the new forms of retail payment?
Rapid developments in technology have brought about new methods of retail payment-such as remote banking, electronic cash, and debit, stored-value, and smart cards-that were unavailable a decade ago....
The impact of fraud on new methods of retail payment
Currency fraud (counterfeiting), check fraud, and credit card fraud are serious problems, costing the U.S. economy billions of dollars each year. But with each of these traditional payments methods,...
The design of wholesale payments networks: the importance of incentives
Charles M. Kahn, William Roberds
Most people are familiar with retail payments systems such as checks and credit cards. Less familiar are wholesale payments systems, which consist of electronic networks used for sending large sums...
James McAndrews, William Roberds
Checks continue to dominate the market for noncash retail payments in the United States. Each year, U.S. residents write between 65 billion and 70 billion checks, an average of one check per business...
The economics of payment finality
Charles M. Kahn, William Roberds
Payment finality is critical to decentralized exchange. By specifying how the transfer of one type of claim extinguishes another, the rules governing finality minimize opportunities for default along...
Are on-line currencies virtual banknotes?
Stephen F. Quinn, William Roberds
The history of money is marked by innovations that have expanded the role of "inside money"-money created by the private sector. For instance, the past few years have seen the development of several...
Charles M. Kahn, William Roberds
The quintessential crime of the information age is identity theft, the malicious use of personal identifying data. In this paper, the authors present a model of identities and their use in credit...
A Daily View of Yield Spreads and Short-Term Interest Rate Movements.
Roberds, William, Runkle, David, Whiteman, Charles H
Daily data on short-term interest rates are used to show how changes in Federal Reserve operating procedures have affected the term structure. Yield spreads were helpful in predicting short-term...
Settlement Risk under Gross and Net Settlement.
Kahn, Charles M, McAndrews, James, Roberds, William
Previous comparative analyses of gross and net settlement have focused on the credit risk of the central counterparty in net settlement arrangements and on the incentives for participants to alter...
Demandable Debts as a Means of Payment: Banknotes versus Checks.
Kahn, Charles M, Roberds, William
We examine whether transactable forms of privately issued, demandable debt are better used as "banknotes" or "checks." The distinction between the two is that a check must be redeemed by the issuing...
Monetary Aggregates as Monetary Targets: A Statistical Investigation.
Roberds, William, Whiteman, Charles H
In this paper, the authors analyze statistical properties of the monetary base, M1, and M2 for the postwar U.S. data record. The authors are specifically interested in answering three policy-related...
Optimal pricing of payment services when cash is an alternative
Payments are increasingly being made with payment cards rather than currency-this despite the fact that the operational cost of clearing a card payment usually exceeds the cost of transferring cash....
Payments Settlement under Limited Enforcement: Private versus Public Systems
William Roberds, Charles M. Kahn
What 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...
Charles M. Kahn, James McAndrews, William Roberds
An extensive literature in monetary theory has emphasized the role of money as a record-keeping device. Money assumes this role in situations where using credit would be too costly, and some might...
Demandable debt as a means of payment: banknotes versus checks
Charles M. Kahn, William Roberds
Checks ; Bank notes
A general equilibrium analysis of check float
James McAndrews, William Roberds
Households and businesses in the U.S. prefer to use check payment over less costly, electronic means of payment. Earlier studies have focused on check “float,” i.e., the time lag between receipt...
Payment intermediation and the origins of banking
James McAndrews, William Roberds
The medieval banks of continental Europe facilitated trade by serving as payment intermediaries. Depositors commonly would pay one another by transferring bank balances with the aid of overdraft...
Settlement risk under gross and net settlement
Charles M. Kahn, James McAndrews, William Roberds
Previous comparative analyses of gross and net settlement have focused on the credit risk of the central counterparty in net settlement arrangements, and on the incentives for participants to alter...
Banks, payments, and coordination
James J. McAndrews, William Roberds
Liquidity (Economics) ; Payment systems ; Bank reserves
James McAndrews, William Roberds
The authors construct and simulate a model of check exchange to examine the incentives a bank (or a bank clearinghouse) has to engage in practices that limit access to its payment facilities, in...
Charles M. Kahn, William Roberds
The quintessential crime of the information age is identity theft, the malicious use of personal identifying data. In this paper we provide a model of “identity†and its use in credit...
Payment System Settlement and Bank Incentives.
Kahn, Charles M, Roberds, William
In this article, we consider the relative merits of net versus gross settlement of interbank payments. Net settlement economizes on the costs of holding non-interest-bearing reserves, but increases...
Data breaches and Iidentity theft
William Roberds, Stacey L. Schreft
This paper presents a monetary-theoretic model to study the implications of networks' collection of personal identifying data and data security on each other's incidence and costs of identity theft....
Understanding risk management in emerging retail payments
Michele Braun, James McAndrews, William Roberds, Richard Sullivan
New technologies used in payment methods can reduce risk, but they can also lead to new risks. Emerging retail payments are prone to operational and fraud risks, especially security breaches and...
Kahn, Charles M., Roberds, William
The quintessential crime of the information age is identity theft, the malicious use of personal identifying data. In this paper we model "identity" and its use in credit transactions. Various types...
A Theory of Transactions Privacy
Charles Kahn, James McAndrews, William Roberds
In this paper, we consider the costs and benefits of transactions privacy. In the environment we consider, privacy is the concealment of potentially useful information, but concealment also...
Payment System Settlement and Bank Incentives
Charles M. Kahn, William Roberds
In this paper we consider the relative merits of net versus gross settlement of interbank payments. Net settlement economizes on the costs of holding non-interest-bearing reserves, but increases...