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Government and private e-money-like systems : Federal Reserve notes and national bank notes
Weber, Warren E. - 2015
The period from 1914 to 1935 in the United States is unique in that it was the only time that both privately-issued bank notes (national bank notes) and central bank-issued bank notes (Federal Reserve notes) were simultaneously in circulation. This paper describes some lessons relevant to...
Persistent link: https://www.econbiz.de/10011280047
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Should the central bank issue e-money?
Kahn, Charles M.; Rivadeneyra, Francisco; Wong, Tsz-Nga - 2018
Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank's existing liabilities like bank notes and reserves. The...
Persistent link: https://www.econbiz.de/10011944863
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Analyzing default risk and liquidity demand during a financial crisis : the case of Canada
Allen, Jason; Hortaçsu, Ali; Kastl, Jakub - 2011
This paper explores the reliability of using prices of credit default swap contracts (CDS) as indicators of default probabilities during the 2007/2008 financial crisis. We use data from the Canadian financial system to show that these publicly available risk measures, while indicative of initial...
Persistent link: https://www.econbiz.de/10009260883
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Eggs in one basket : security and convenience of digital currencies
Kahn, Charles M.; Rivadeneyra, Francisco; Wong, Tsz-Nga - 2021 - Last updated: January 28, 2021
Digital currencies store balances in anonymous electronic addresses. We analyze the tradeoffs between the safety and convenience of aggregating balances in addresses, electronic wallets and banks. In our model, agents balance the risk of theft of a large account with the cost to safeguarding a...
Persistent link: https://www.econbiz.de/10012421984
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Regulatory requirements of banks and arbitrage in the post-crisis federal funds market
Garratt, Rod; Priazhkina, Sofia - 2022 - Last updated: November 28, 2022
This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks,...
Persistent link: https://www.econbiz.de/10013466133
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A Bitcoin standard : lessons from the gold standard
Weber, Warren E. - 2016
This paper imagines a world in which countries are on the Bitcoin standard, a monetary system in which all media of exchange are Bitcoin or are backed by it. The paper explores the similarities and differences between the Bitcoin standard and the gold standard and describes the media of exchange...
Persistent link: https://www.econbiz.de/10011446194
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Understanding firms' inflation expectations using the Bank of Canada's Business Outlook Survey
Richards, Simon; Verstraete, Matthieu - 2016
Inflation expectations are a key determinant of actual and future inflation and thus matter for the conduct of monetary … policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada …'s Business Outlook Survey, spanning the 2001 to 2015 period. The data are aggregated to construct an inflation expectations index …
Persistent link: https://www.econbiz.de/10011433529
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Managing GDP tail risk
Duprey, Thibaut; Ueberfeldt, Alexander - 2020 - Last updated: January 28, 2020
We propose a novel framework to analyze how policy-makers can manage risks to the median projection and risks specific to the tail of gross domestic product (GDP) growth. By combining a quantile regression of GDP growth with a vector autoregression, we show that monetary and macroprudential...
Persistent link: https://www.econbiz.de/10012154134
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How do central bank projections and forward guidance influence private-sector forecasts?
Jain, Monica; Sutherland, Christopher S. - 2018
We construct a 23-country panel data set to consider the effect of central bank projections and forward guidance on private-sector forecast disagreement. We find that central bank projections and forward guidance matter mainly for private-sector forecast disagreement surrounding upcoming policy...
Persistent link: https://www.econbiz.de/10011777743
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Starting from a blank page? : semantic similarity in central bank communication and market volatility
Ehrmann, Michael; Talmi, Jonathan - 2016
Press releases announcing and explaining monetary policy decisions play a critical role in the communication strategy of central banks. Because of their market-moving potential, it is particularly important how they are drafted. Often, central banks start from the previous statement and update...
Persistent link: https://www.econbiz.de/10011517131