effects of different CBDC regimes in a New Keynesian model with a heterogeneous household sector. We consider that a CBDC may … household may hold an unlimited amount of CBDC, (iii) the central bank sets a maximum amount of CBDC each household is allowed … household is allowed to hold. Generally, we find that the introduction of a CBDC increases economy-wide utility as it allows …

projections IV to study the effects of monetary policy on household borrowing using Swedish data. The results are uncertain but … indicate that the stock of household loans is 1.6 percent lower two years after a 1 percentage point shock to the repo rate …. This is a relatively modest effect considering that the stock of household loans on average grew by 7.8 percent per year …