Macro Lit Review 4: Highlights from Mid-2023 with George Selgin
Macro Musings with David Beckworth
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The Fed's Decision to Offer Volume Discounts to Small Banks
Small banks clamor for an alternative to RTP because it is owned by the big banks. But in turn, that enters another competitor - now you lose some of that scale efficiency. The reason why I think the Fed might go to volume discounts is not to recover its costs. It's to get all the big banks on board and improve its bottom line. They have all kinds of ways as a regulator to put pressure on institutions to hook up to their system instead of hooking up to RTP. And most of all, they never have to go out of business.
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