Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/60812
Authors: 
Atalay, Enghin
Martin, Antoine
McAndrews, James
Year of Publication: 
2010
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 447
Abstract: 
This paper attempts to quantify the benefits associated with operating a liquidity-saving mechanism (LSM) in Fedwire, the large-value payment system of the Federal Reserve. Calibrating the model of Martin and McAndrews (2008), we find that potential gains are large compared to the likely cost of implementing an LSM, on the order of hundreds of thousands of dollars per day.
Subjects: 
Liquidity-saving mechanisms
real-time gross settlement
large-value payment systems
JEL: 
E42
E58
G21
Document Type: 
Working Paper

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