Payments systems play a fundamental role in an economy by providing the mechanisms through which payments arising from transactions can be settled. The existing literature on the economics of payments systems is large but loosely organized, in that each model uses a distinct set-up and sometimes a distinct equilibrium concept.
: Payment clearing and settlement systemsPayments systems are typically characterized by some degree of tiering, with upstream firms (clearing agents) providing settlement accounts to downstream institutions that wish to clear and settle payments indirectly in these systems (indirect clearers).
: Financial Institutions; Financial services; Market structure and pricing; Payment clearing and settlement systemsThe authors examine the impact of multinational enterprises (MNEs) on exchange rate pass-through in an environment where an MNE engages in Cournot (quantity) competition with domestic and foreign rivals.
: Economic models; Exchange rates; Market structure and pricingMany countries prohibit large shareholdings in their domestic banks.The authors examine whether such a restriction restrains competition in a duopolistic loan market. Blockholders may influence managers' output decisions by choosing capital structure, as in Brander and Lewis (1986).
: Financial Institutions; Financial services; Financial system regulation and policiesThe four essays published here provide a useful overview for anyone interested in understanding the issues and policy environment surrounding financial system stability.
: Financial Institutions; Financial marketsThe magnitude and frequency of recent financial crises underscore the importance of understanding financial instability for the purpose of crisis prevention and crisis management.
: Financial Institutions; Financial markets; Financial servicesThis paper investigates the effects of financial market consolidation on risk capital allocation in a financial institution and the implications for market liquidity in dealership markets. We show that an increase in financial market consolidation can have ambiguous effects on liquidity in foreign exchange and government securities markets.
: Financial Institutions; Financial markets
