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CBDC as competitor for bank deposits and cryptocurrencies
Fuchs, Max - 2022
central bank and retail banks, may thus observe a decline in the demand for their payments systems, i.e. cash and deposits …
Persistent link: https://www.econbiz.de/10013338754
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Is a secondary currency essential? On the welfare effects of a new currency
Fuchs, Max; Michaelis, Jochen - 2022
The coexistence of cash and digital currencies constitutes a system of parallel currencies. This paper tackles the … welfare improvement, the welfare effect depends on differences in returns and costs, and, in particular, the fraction of cash …
Persistent link: https://www.econbiz.de/10013193556
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Does a CBDC reinforce inefficiencies?
Fuchs, Max - 2022
This paper examines whether a central bank digital currency (CBDC) reinforces inefficiencies in transactions with cash … extended by a CBDC. We show that an interest-bearing CBDC reinforces inefficiencies in transactions with cash since opportunity … costs for cash holders and money supply increase. Nevertheless, a CBDC is able to increase welfare as long as the share of …
Persistent link: https://www.econbiz.de/10013427777
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When Does the Introduction of a New Currency Improve Welfare?
Fuchs, Max; Michaelis, Jochen - 2021
of cash traders who will be replaced by digital money traders. …
Persistent link: https://www.econbiz.de/10012543687
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The Credit Composition of Global Liquidity
Herwartz, Helmut; Ochsner, Christian; Rohloff, Hannes - 2021
We conceptualize global liquidity as global monetary policy and credit components by means of a large-scale dynamic factor model. Going beyond previous work, we decompose aggregate credit components into credit supply and demand flows directed at businesses, households and governments. We show...
Persistent link: https://www.econbiz.de/10012543696
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Global Credit Shocks and Real Economies
Herwartz, Helmut; Ochsner, Christian; Rohloff, Hannes - 2021
We estimate the marginal effects of identified components of global liquidity on 43 real economies. To this end, we employ global public and private credit components of Herwartz, Ochsner, and Rohloff (2021) in factor-augmented vector-autoregressions to trace credit shocks through the real...
Persistent link: https://www.econbiz.de/10012543697
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Using forecasts to uncover the loss function of FOMC members
Pierdzioch, Christian; Rülke, Jan-Christoph; Tillmann, … - 2013
We revisit the sources of the bias in Federal Reserve forecasts and assess whether a precautionary motive can explain the forecast bias. In contrast to the existing literature, we use forecasts submitted by individual FOMC members to uncover members' implicit loss function. Our key finding is...
Persistent link: https://www.econbiz.de/10010294354
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Establishing a hawkish reputation: Interest rate setting by newly appointed central bank governors
Neuenkirch, Matthias - 2012
In this paper, we explore the interest rate setting behavior of newly appointed central bank governors. We use the Kuttner and Posen (2010) sample, which covers 15 OECD countries, and estimate an augmented Taylor (1993) rule for the period 1974-2008. We find, first, that newly appointed...
Persistent link: https://www.econbiz.de/10010294374
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Are public preferences reflected in monetary policy reaction functions?
Neuenkirch, Matthias - 2013
In this paper, we test whether public preferences for price stability (obtained from the Eurobarometer survey) are actually reflected in the interest rates set by eight central banks. We estimate augmented Taylor (1993) rules for the period 1976-1993 using the dynamic GMM estimator. We find,...
Persistent link: https://www.econbiz.de/10010294385
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Predicting Bank of England's asset purchase decisions with MPC voting records
Neuenkirch, Matthias - 2013
We use MPC voting records to predict changes in the volume of asset purchases. We find, first, that minority voting favoring an increase in the volume of asset purchases raises the probability of an actual increase at the next meeting. Second, minority voting supporting a higher Bank Rate...
Persistent link: https://www.econbiz.de/10010294403