shift from bank finance to bond finance, at a time when the cost of market debt rose above the cost of bank loans. We show …

internalize this feature ex-ante, and the central bank arises as a deposit monopolist, attracting all deposits away from the …The introduction of a central bank digital currency (CBDC) allows the central bank to engage in large …-scale intermediation by competing with private financial intermediaries for deposits. Yet, since a central bank is not an investment expert …

A central bank digital currency, or CBDC, may provide an attractive alternative to traditional demand deposits held in … private banks. When offering CBDC accounts, the central bank needs to confront classic issues of banking: conducting maturity … version of a Diamond and Dybvig (1983) model, with an additional and exogenous price stability objective for the central bank …

minimize the length and severity of the recession, would require a stronger commitment to low interest rates for an extended …

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of … the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this … that a central bank that wants to achieve maximum stability of economic activity should use a price index that gives …

the ability of the central bank to alleviate the fiscal burden by influencing different terms in the government resource … seignorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv …) how central bank assets create income risk, and whether or not this threatens its solvency, and (v) how the central bank …

instrument of monetary policy. We show that by paying an appropriate rate on reserves, the central bank can pin the price level …

via contractions in credit and disruption in financial markets. Managing the size and composition of the central bank …

style of central banking affects central banks' solvency. A central bank is insolvent if its requirement to pay dividends to … Bank), and exchange-rate risk (central banks of small open economies). We find that a central bank that pays dividends … circumstances, the dividend will be negative, meaning that the government is making a payment to the bank. If the charter does not …