Abstract
This paper analyses the effects of innovations in the retail payment system on the conduct and implementation of monetary policy. Recent innovations in retail payment systems (access products and electronic money products) are placed in the context of historical institutional change in the economy-wide payments system. The first part presents the central institutional characteristics of the economy-wide payments system and the conceptualisation of the fundamentals of monetary policy. The second part analyses the effects of payment system innovations on the question whether monetary policy will survive payment system innovations in principle, its effects on the efficacy and implementation of monetary policy. In addition to these direct effects, the second part will also discuss the indirect effects on monetary policy via the efficiency and stability of payment systems. The analysis is based on the New Institutional Economics. JEL: E 42 (Monetary Systems), E 51 (Money Supply), E 58 (Central Banks and their Policies)
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