Narrow search
Showing 1 - 10 of 1,509
Cover Image
CBDC and financial stability
Ahnert, Toni; Hoffmann, Peter; Leonello, Agnese; … - 2023
What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying a model of financial intermediation with an endogenously determined probability of a bank run, using global games. As an alternative to bank deposits, consumers can also store...
Persistent link: https://www.econbiz.de/10013553428
Cover Image
Public money as a store of value, heterogeneous beliefs, and banks : implications of CBDC
Muñoz, Manuel A.; Soons, Oscar - 2023
The bulk of euro-denominated cash is held for store of value purposes, with such holdings sharply increasing in times … hold cash. In our model, the introduction of a central bank digital currency (CBDC) as a store of value that is superior to … cash leads to bank disintermediation as some depositors opt for switching to CBDC based on their beliefs. While CBDC …
Persistent link: https://www.econbiz.de/10014278624
Cover Image
Whatever it takes to save the planet? : central banks and unconventional green policy
Ferrari, Alessandro; Landi, Valerio Nispi - 2020
We study the effects of a temporary Green QE, defined as a policy that temporarily tilts the central bank's balance sheet toward green bonds, i.e. bonds issued by firms in non-polluting sectors. To this purpose, we merge a standard DSGE framework with an environmental model. In our model,...
Persistent link: https://www.econbiz.de/10012384477
Cover Image
Policy uncertainty, lender of last resort and the real economy
Jasova, Martina; Mendicino, Caterina; Supera, Dominik - 2021
We show that a reduction in lender of last resort (LOLR) policy uncertainty posi-tively affects bank lending and propagates to investment and employment. We exploita unique policy that reduced uncertainty regarding the availability of future LOLRfunding for banks as a quasi-natural experiment....
Persistent link: https://www.econbiz.de/10012426306
Cover Image
Can more public information raise uncertainty? : the international evidence on forward guidance
Ehrmann, Michael; Gaballo, Gaetano; Hoffmann, Peter; … - 2019
Central banks have used different types of forward guidance, where the forward guidance horizon is related to a state contingency, a calendar date or left open-ended. This paper reports cross-country evidence on the impact of these different types of forward guidance on the sensitivity of bond...
Persistent link: https://www.econbiz.de/10011997441
Cover Image
Market-stabilization QE
Motto, Roberto; Özen, Kadir - 2022
We identify a novel dimension of monetary policy from high-frequency changes in asset prices around ECB policy events, orthogonal to surprises extracted from risk-free interest rates. We find that it is present in policy events that were interpreted by real-time market commentaries as containing...
Persistent link: https://www.econbiz.de/10012818740
Cover Image
Supervisory policy stimulus : evidence from the euro area dividend recommendation
Dautovic, Ernest; Gambacorta, Leonardo; Reghezza, Alessio - 2023
At the onset of the Covid-19 outbreak, central banks and supervisors introduced dividend restrictions as a new policy instrument aimed at supporting lending to the real economy and strengthening banks' capacity to absorb losses. In this paper we estimate the impact of the ECB's dividend...
Persistent link: https://www.econbiz.de/10014278602
Cover Image
A unified framework for CBDC design : remuneration, collateral haircuts and quantity constraints
Assenmacher-Wesche, Katrin; Berentsen, Aleksander; … - 2021
We study the macroeconomic effects of central bank digital currency (CBDC) in a dynamic general equilibrium model. Timing and information frictions create a need for inside (bank deposits) and outside money (CBDC) to finance production. To steer the quantity of CBDC, the central bank can set the...
Persistent link: https://www.econbiz.de/10012596299
Cover Image
The economics of central bank digital currency
Ahnert, Toni; Assenmacher-Wesche, Katrin; Hoffmann, Peter; … - 2022
This paper provides a structured overview of the burgeoning literature on the economics of CBDC. We document the economic forces that shape the rise of digital money and review motives for the issuance of CBDC. We then study the implications for the financial system and discuss of a number of...
Persistent link: https://www.econbiz.de/10013342232
Cover Image
Central bank digital currency : when price and bank stability collide
Fernández-Villaverde, Jesús; Schilling, Linda; Uhlig, … - 2024
This paper shows the existence of a central bank trilemma. When a central bank is involved in financial intermediation, either directly through a central bank digital currency (CBDC) or indirectly through other policy instruments, it can only achieve at most two of three objectives: a socially...
Persistent link: https://www.econbiz.de/10014484337