Deferred Net Settlement versus Real-Term Gross Settlement for Large-Value Transfer Systems

IN THE MID-1970s, Boris Pesek (1976, p. 863) stated that demand deposit turnover was so amazingly fast in the United States as to make inescapable the conclusion that demand deposit balances were being operated at or close to peak efficiency. Therefore, Pesek concluded that demand deposits must constitute solely transactions, rather than precautionary or speculative, balances.