Vol. 84, No. 3
Third Quarter 1999
What Do Asset Prices Tell Us about the Future?
Stephen D. Smith
This article reviews the theoretical literature regarding the extent to which asset prices aggregate information and examines evidence on the ability of financial asset prices to forecast inflation, real output or consumption, and recessions.
The Banking Sector Rescue in Mexico
This article examines Mexico's bank rescue efforts (1995–98) with a particular focus on the role of the deposit insurance fund, the Bank Fund for the Protection of Savings.
The Design of Wholesale Payments Networks: The Importance of Incentives
Charles M. Kahn and William Roberds
This article considers the question of what is the best design for a wholesale payments system, in particular whether it should settle on a net or a real-time gross basis, and some of the difficult policy questions facing both participants and regulators of wholesale systems.
Revising the Atlanta Fed Dollar Index
For more than a decade the Federal Reserve Bank of Atlanta's trade-weighted dollar index has served as a summary statistic for foreign exchange movements of the dollar. Recent revisions acknowledging significant changes in the worldwide economy ensure that the index will continue to contribute valuable information into the future.