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Article: Developments in the pricing of credit card services.
- Article from:
- Federal Reserve Bulletin
- Article date:
- September 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Board of Governors of the Federal Reserve System. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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This article was prepared by Glenn B. Canner and Charles A. Luckett of the Board's Division of Research and Statistics. Wayne C. Cook and Mark A. Peirce provided research assistance.
Interest rates on credit card accounts have typically fluctuated within a natrower range--and at higher levels--than rates for most other types of credit. The contrast receives particular attention when other rates are dropping sharply, which often occurs during periods of economic weakness. At such times, some observers look upon stubbornly high credit card rates as a potential impediment to consumer spending, and therefore to economic recovery, while others regard high rates ...