Recent regulatory and technological changes have spurred the development of automated trading systems known as ECNs, or electronic communications networks. Proponents of the networks contend that ECNs can cut transaction costs, accelerate trade execution, and expand the price information...

One of the most surprising features of the long current expansion has been the decline in price inflation through the late 1990s. Some observers interpret the decline as evidence of a permanent change in the relationship between inflation and economic growth. But an analysis based on a standard...

Since 1984, the U.S. economy has grown at a remarkably steady pace. An analysis of this increased stability shows that every major component of GDP has exhibited smoother growth. However, two components--inventory investment and consumer spending--are responsible for the bulk of the decline in...

Between 1990 and 1997, poor economic fundamentals and a prolonged hangover from excessively rapid growth in the 1980s caused house prices in the New York metropolitan area to grow much more slowly than prices nationwide; these factors played a smaller role in the decline of upstate New York's...

The South American customs union known as Mercosur has contributed significantly to regional trade liberalization. But by encouraging trade within the group at the expense of trade with nonmembers, Mercosur may limit member countries' access to high-technology imports, an important stimulus to...

To improve efficiency, some large retailers, suppliers, and distributors have begun to conduct business-to-business commerce electronically. This practice could grow rapidly if the Internet becomes the primary low-cost network for such transactions. Before the Internet can fully support...

Electronic billing and payment systems are about to change the way many households pay their monthly bills. These systems are likely to increase consumer convenience and reduce billers' costs. Several factors, however, could slow down the widespread use of electronic billing and payments,...

The rapid growth of the stock market since 1990 has encouraged the view that corporate equity holdings are becoming the primary asset for a broad spectrum of American households. A closer look at the evidence, however, reveals that real estate continues to eclipse stocks as a share of most...

Because of the concentrated distribution of interest rates on outstanding mortgages, modest interest rate declines in 1997 and 1998 made refinancing a smart choice for a record number of homeowners. In addition, the strong economy and the age of mortgage loans likely contributed to the surge in...

From the fall of 1997 to the spring of 1999, yield spreads in Japan's corporate bond market increased sharply. An analysis of this rapid rise suggests that Japanese investors in corporate bonds may be paying closer attention to the credit risk of individual issuers. Such a shift in investor...