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We study how the introduction of a central bank-issued digital currency affects interest rates, the level of economic activity, and welfare in an environment where both central bank money and private bank deposits are used in exchange. Banks in our model are financially constrained, and the...
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distinguishes two aspects of the problem. The first one considers the implications of changes in payments for the roles of central … payments, information policy in the area of payments, promotion of standardization and interoperability of systems, effective … oversight and operational activities of central banks. The changing payments landscape also requires consideration of long …
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