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cash can help to avoid such a situation. We find interesting similarities to both crises in two separate case studies, one … on the demonetization in India 2016 and the other on cash supply during various crises in Greece since 2008. The paper …In this paper, we focus on the stabilizing role of cash from a society-wide perspective. Starting with conceptual …
Persistent link: https://www.econbiz.de/10013266037
Cash usage at the point-of-sale decreased perceptibly in the past years. This is mainly due to the ongoing trend … government regulations and supply-side restrictions by commercial banks. Nonetheless, overall demand for euro cash remained …-driven shift towards lower banknote denominations. Central banks all over the world are intensively thinking about the potential …
Persistent link: https://www.econbiz.de/10013399889
The present paper provides an overview on current developments of cash usage and issue of central bank digital currency … (CBDC) in the euro area and proposes a possible design of a digital euro that allows for instant offline payments. Cash … regulations and supply-side restrictions by commercial banks. Nonetheless, overall demand for euro cash remained strong and even …
Persistent link: https://www.econbiz.de/10014518599
new financial crises is an important criterion for a stable European Union. Proponents of the Sovereign Money System (SMS …
Persistent link: https://www.econbiz.de/10011808854
rise of cryptoassets and a decline in the use of cash, should digital payments be left entirely to the private sector or …
Persistent link: https://www.econbiz.de/10011967273
To end a financial crisis, the central bank is to lend freely, against good collateral, at a high rate, according to Bagehot's Rule. We argue that in theory and in practice there is a missing ingredient to Bagehot's Rule: secrecy. Re-creating confidence requires that the central bank lend in...
Persistent link: https://www.econbiz.de/10013048087
Central banks repo market operations and liquidity infusions occasion a structural liquidity mismatch in bank balance sheets and increase the dependence on central bank liquidity. This paper argues for what I term “Circular Monetary Economics”, an approach to monetary policy that seeks to...
Persistent link: https://www.econbiz.de/10012825201
In June 2022, the Federal Reserve started reducing the size of its balance sheet, which had expanded to just under $9 trillion in response to the COVID-19 pandemic. However, whereas banks' reserves at the Federal Reserve have decreased, the investment of money market funds (MMFs) at the Federal...
Persistent link: https://www.econbiz.de/10013465412
Persistent link: https://www.econbiz.de/10011944433
implementation of CBDC in terms of their monetary policy implications. In the ‘money user scenario' CBDC co-exists with both cash and … commercial bank deposits. In the ‘money manager scenario' cash is abolished and CBDC co-exists only with commercial bank deposits …. And in the ‘money maker scenario' commercial bank deposits are abolished and CBDC co-exist only with cash. The evaluation …
Persistent link: https://www.econbiz.de/10012954346