The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Payment Systems

  • William Roberds
Reference work entry


Payment systems are arrangements that allow for the discharging of debts by the transfer of specialized claims. This article illustrates how payment systems can facilitate exchange in economic environments where enforcement of obligations is limited, and collateral is scarce.


Banking industry Banknotes Bills of exchange Central banking Fiat money Inside money Intermediate goods Net settlement Network effects Outside money Payment systems Settlement Wicksell triangle 

JEL Classifications

E42 E44 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • William Roberds
    • 1
  1. 1.