Payments and prices

Dirk Niepelt

No 2023-03, Working Papers from Swiss National Bank

Abstract: We analyze the effect of structural change in the payment sector and of monetary policy on prices. Means of payment are obtained through portfolio choices and commodity sales and "liquified" through velocity choices. Interest rates, intermediation margins, and costs of payment instrument use affect portfolios, velocities, liquidity, relative prices, and the aggregate price level. Money is neutral, interest rate policy is not. Scarcer liquidity need not drive up velocity. Payment instruments and velocities generate positive externalities. Commodity price aggregates mis-measure consumer price inflation, distinctly so over the business cycle.

Keywords: Payments; Velocity; Prices; Intermediation; Inflation (search for similar items in EconPapers)
JEL-codes: E31 E41 E44 E52 G11 G23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023
New Economics Papers: this item is included in nep-ban, nep-dge, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.snb.ch/en/publications/research/workin ... orking_paper_2023_03 (text/html)

Related works:
Working Paper: Payments and Prices (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:snb:snbwpa:2023-03

Access Statistics for this paper

More papers in Working Papers from Swiss National Bank Contact information at EDIRC.
Bibliographic data for series maintained by Enzo Rossi ().