The current P/E ratio: higher than you think

Stock market ; Stock - Prices

Recent developments in wholesale payments systems

Wholesale payments and settlement systems in G-10 countries have undergone significant change in recent years. Notably, central banks have sought to increase the safety and reliability of these systems. In this article, William R. Emmons describes two approaches that have been pursued. Significant progress has been achieved in strengthening (or "securing") many existing payments system arrangements based on net settlement. In addition, many new gross settlement systems have been created, and existing ones have been improved. The article also explores why private-sector financial institutions often prefer to upgrade and secure existing net settlement systems, despite central bank preferences for the latter.Payment systems ; Electronic funds transfers ; Fedwire ; Risk

Interbank netting agreement and the distribution of bank default risk

Central banks and private banks alike have advocated greater use of interbank netting agreements in recent years in order to reduce potential for transmitting economic shocks through interbank markets. This paper provides a model of an interbank payment market and shows that one sideeffect of greater netting of interbank claims is a redistribution of bank default risk away from interbank claimants toward non-bank creditors of banks, including the deposit insurer. Interbank netting agreements thus involve a trade-off between reduced interbank credit-risk exposure and increased concentration of bank default risk on other sets of bank creditors.Deposit insurance

Inflation, exchange rates, and oil prices

Exports

What’s behind the falling U.S. private savings rate?

Saving and investment

CBO’s growth outlook

Economic forecasting

An indicated specular degradation rate for aluminized Mylar surfaces in near-earth orbit from recent photometric observations of the Echo I satellite

Photometric measurements of Echo I satellite on specular degradation of aluminized Mylar surface during orbi

The information content of Treasury inflation-indexed securities

Government securities ; Treasury notes

Questions about the budget deficit of the U.S. have no easy answers

This Q&A on the federal deficit is a preview of the "Dialogue with the Fed" that the public is invited to Oct. 18 at the St. Louis Fed.Budget deficits