Most of us rarely think about how we pay for goods and services. For millions of working families, America's slow and antiquated payment system costs billions through check cashers, pay day lenders, and bank overdraft fees. America's payment system is among the slowest in the world for major economies. Recognizing the need to improve, the Federal Reserve recently requested thoughts on how to upgrade America's payment system to operate in real time. Aaron Klein discusses how the payment system contributes to income inequality and what to do about it. Klein is a fellow in Economic Studies and policy director of the Center on Regulation and Markets at the Brookings Institution. He focuses on financial regulation and technology, macroeconomics, and infrastructure finance and policy. Sponsored by the Global Financial Markets Center.
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