Schilling, Linda; Fernández-Villaverde, Jesús; Uhlig, … - 2022
version of a Diamond and Dybvig (1983) model, with an additional and exogenous price stability objective for the central bank … either as excessive real asset liquidation or as a failure to maintain price stability. We demonstrate an impossibility … result that we call the CBDC trilemma: of the three goals of efficiency, financial stability (i.e., absence of runs), and …