Wang, Guizhou; Hausken, Kjell - In: Cogent economics & finance 10 (2022) 1, pp. 1-23
Central Bank Digital Currencies (CBDCs) enable negative interest rates. A game is analyzed between a central bank (accounting for the government’s interest) and a representative household choosing to consume, hold CBDC, or hold non-CBDC. The central bank chooses negative interest rate when it...