Abstract
In providing comments on the chapter by Don Tucker, I believe it is necessary to depart somewhat from the chapter itself and to provide an understanding of why there is Federal Reserve competition with the private sector and what steps can be taken to ensure fair competition. It is fundamental to the discussion of the role of the Federal Reserve in the payment system to understand why the Fed has an operational role in the first place. Tucker’s chapter appears to start with the premise that the Fed should have an operational role (or at least he does not argue against such a role). Indeed, there are very few examples in the United States outside of banking where such direct private-sector versus public-sector competition exists. Furthermore, many foreign central banks have little, if any, direct competitive involvement in their countries’ payment system operations, other than to facilitate settlement.
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© 1990 Kluwer Academic Publishers
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Listfield, R.J. (1990). Commentary. In: Humphrey, D.B. (eds) The U.S. Payment System: Efficiency, Risk and the Role of the Federal Reserve. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2510-6_14
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DOI: https://doi.org/10.1007/978-94-009-2510-6_14
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-7633-3
Online ISBN: 978-94-009-2510-6
eBook Packages: Springer Book Archive