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
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Englisch
- Bibliographic citation
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Series: Bank of Canada Working Paper ; No. 2008-17
- Classification
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Wirtschaft
- Subject
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Payment, clearing, and settlement systems
Exchange rate regimes
- Event
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Geistige Schöpfung
- (who)
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Chapman, James T. E.
- Event
-
Veröffentlichung
- (who)
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Bank of Canada
- (where)
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Ottawa
- (when)
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2008
- DOI
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doi:10.34989/swp-2008-17
- Handle
- Last update
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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
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