Drawing on wide-ranging contributions from prominent international experts and discussing some of the most pressing issues facing policy makers and practitioners in the field of payment systems today, this volume provides cutting-edge perspectives on the current issues surrounding payment systems and their future. It covers a range of continually important topics, including: the form payment systems might take in the future; the risks associated with this evolution; the techniques being deployed to assess these risks; and the implications these risks have for the respective roles of the public and private sector. Produced in association with the Bank of England, this book is fascinating reading for practitioners and policy makers in the field of payment systems, as well as students and researchers engaged with the economics of payments and central banking policy.
General introduction: the future of payment systems by Andrew G. Haldane and Stephen Millard and Victoria Saporta 1
Pt. I Payment systems and public policy 13
1 Central banks and payment systems: past, present and future by Stephen Millard and Victoria Saporta 15
2 The role of a central bank in payment systems by Edward J. Green 45
3 Some challenges for research in payments by Edward J. Green 57
4 Payment economics and the role of central banks by Jeffrey Lacker 68
Pt. II New approaches to modelling payments 73
5 New models of old (?) payment questions by Ricardo Cavalcanti and Neil Wallace 75
6 Optimal settlement rules for payment systems by Benjamin Lester and Stephen Millard and Matthew Willison 87
7 The microstructure of money by James McAndrews 100
Pt. III Current payment policy issues 117
8 Wholesale payments: questioning the market-failure hypothesis by George Selgin 119
9 Central bank intraday collateral policy and implications for tiering in RTGS payment systems by John P. Jackson and Mark J. Manning 138
10 Central banks' interest calculating conventions: deviating from the intraday/overnight status quo by George Speight and Matthew Willison and Morten Bech and Jing Yang 160
11 How should we regulate banks' liquidity? by Jean-Charles Rochet 175
Pt. IV Policy perspectives on the future of payments 187
12 The diffusion of real-time gross settlement by Morten L. Bech 189
13 E-settlement: soon a reality? by Harry Leinonen 206
14 Real-time liquidity management in a globally-connected market by Richard Pattinson 230
15 Will central banking survive electronic money? by Stefan W. Schmitz