Bolt, Wilko; Frost, Jon; Shin, Hyun Song; Wierts, Peter - 2023
money. However, there are limits. How negative can central bank equity be before fiat money loses credibility? We address … this question using a global games approach motivated by the fall of the Bank of Amsterdam (1609–1820). We solve for the … fiscal support and central bank capital in sustaining trust in fiat money …