Dario Laudati's book chapter, The international payment system, euromarkets, and central bank swap lines, has been accepted for publication in the forthcoming book "International Corporate Finance," Poniachek, H. (ed.), World Scientific Publishing. The chapter is a joint work with Columbia undergraduate student Otto Benedek.
In the first section of the chapter, the two authors describe the state of the international payment system by surveying the literature on payment instruments, adding technical points on clearing, settlement, and authorization processes, the nature of network and cross-border payments. The authors stress the importance of international regulation and oversight, and list a number of open points to be addressed in the payments space in the years to come.
Furthermore, Dario and Otto expand on the nature and rationales of eurodollar markets in today's international financial system, and how central bank swap lines help fix some of the issues created by a hierarchical global monetary order. In both cases, the authors maintain the importance of discussing the future geo-economic and financial innovations challenges that national and international authorities will be facing in the future to come.
