Download or read book Impacts of Third-Party Payment in an Open Economy written by Chiou-Wen Chen and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the third-party payment system is a matter of heated debate among academics and policymakers, and empirical studies of it are commonplace, this paper is believed to be the first to theoretically model its macroeconomic impact on a small open economy. The outcomes indicate that increases in the use of third-party payments will have a positive effect on national income in such an economy, but an ambiguous effect on domestic interest rates if the Marshall-Lerner condition holds. However, if the Marshall-Lerner condition does not hold, then increases in third-party payments could lead to higher domestic interest rates in an economy of this type. Additionally, third-party payments will ambiguous effects on such an economy's foreign-exchange rate.