Arbeitspapier
Policy coordination in an international payment system
Given the increasing interdependence of both financial systems and attendant payment and settlement systems a vital question is what form should optimal policy take when there are two connected payment systems with separate regulators. In this paper I show that two central banks operating in a non-cooperative way will not have an incentive to achieve the optimal allocation of goods. I further show that this non-cooperative outcome will be supported by a zero intraday interest rate and constant fixed exchange rate. This is in contrast to recent research; which has shown that domestically a zero intraday interest rate will achieve a social optimum and that the central bank has an incentive to achieve it.
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Canada Working Paper ; No. 2008-17
- Classification
-
Wirtschaft
- Subject
-
Payment, clearing, and settlement systems
Exchange rate regimes
- Event
-
Geistige Schöpfung
- (who)
-
Chapman, James T. E.
- Event
-
Veröffentlichung
- (who)
-
Bank of Canada
- (where)
-
Ottawa
- (when)
-
2008
- DOI
-
doi:10.34989/swp-2008-17
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Chapman, James T. E.
- Bank of Canada
Time of origin
- 2008
Other Objects (12)
Monetary policy implementation and payment system modernization
Payment coordination and liquidity efficiency in the new Canadian wholesale payments system
Changes in Payment Timing in Canada’s Large Value Transfer System
An empirical analysis of bill payment choices
Wait a minute: The efficacy of discounting versus non-pecuniary payment steering
Credit risk and collateral demand in a retail payment system
How long does it take you to pay? A duration study of canadian retail transaction payment times
Liquidity usage and payment delay estimates of the new Canadian high value payments system
Macroprudential policy with capital buffers
Policy rules for capital controls
The global effects of US fiscal policy
The international experience with negative policy rates
Monetary policy implementation and payment system modernization
Payment coordination and liquidity efficiency in the new Canadian wholesale payments system
Changes in Payment Timing in Canada’s Large Value Transfer System
An empirical analysis of bill payment choices
Wait a minute: The efficacy of discounting versus non-pecuniary payment steering
Credit risk and collateral demand in a retail payment system
How long does it take you to pay? A duration study of canadian retail transaction payment times
Liquidity usage and payment delay estimates of the new Canadian high value payments system
Macroprudential policy with capital buffers
Policy rules for capital controls
The global effects of US fiscal policy
The international experience with negative policy rates
Monetary policy implementation and payment system modernization
Payment coordination and liquidity efficiency in the new Canadian wholesale payments system
Changes in Payment Timing in Canada’s Large Value Transfer System
An empirical analysis of bill payment choices
Wait a minute: The efficacy of discounting versus non-pecuniary payment steering
Credit risk and collateral demand in a retail payment system
How long does it take you to pay? A duration study of canadian retail transaction payment times
Liquidity usage and payment delay estimates of the new Canadian high value payments system
Macroprudential policy with capital buffers
Policy rules for capital controls
The global effects of US fiscal policy