Monetary pest control.(Federal Reserve Board policies to prevent Y2K problems may lead to other banking problems)(Brief Article)

Economist (US), The, December, 1999

THOSE knowledgeable and optimistic Americans probably owe a lot to their government, which has done more than any other to tackle the millennium bug and its possible effects. Nowhere is this truer than in American banking. Having cajoled, advised and ordered banks to do something about their computer systems, American regulators are now convinced that all American banks have prepared their systems for the turn of the year (or so they say). Some regulators, indeed, claim that taking money out of a bank would actually be riskier than leaving it be: in America, after all, carrying wads of cash around is an invitation to thieves and muggers. But just in case anyone is not reassured, the Federal Reserve is now throwing money at the problem as well.

The Fed has...

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