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Khan, Aubhik - 2012

In a canonical staggered pricing model, monetary discretion leads to multiple private sector equilibria. The basis for multiplicity is a form of policy complementarity. Specifically, prices set in the current period embed expectations about future policy, and actual future policy responds to...

Persistent link: https://www.econbiz.de/10013097365

Learning from the Pandemic Monetary Policy Experiment

Hetzel, Robert L. - 2022

sustained increase in inflation. In response, the succeeding Volcker-Greenspan FOMCs rejected an activist monetary policy in … favor of a neutral policy. That policy concentrated on achieving low trend inflation and abandoned any attempt to lower … unemployment by exploiting the inflation-unemployment trade-offs promised by the Phillips curve. The success or failure of the FOMC …

Persistent link: https://www.econbiz.de/10013291209

Central Bank Digital Currencies and Cryptocurrencies : a Game Theoretic Analysis

Quilis, Enrique M. - 2022

We explore the interaction between central bank digital currencies and cryptocurrencies using a game-theoretic model. The solution of this model is characterized by a multiplicity of equilibria, delimited by the regulatory capability of the central bank and its interaction with the financial...

Persistent link: https://www.econbiz.de/10013293623

The Logic and Limits of the Federal Reserve Act

Menand, Lev - 2022

Over the past fourteen years, the U.S. Federal Reserve has rescued overleveraged financial companies, purchased trillions of dollars of mortgage-backed securities, and created novel facilities to support ordinary businesses, nonprofits, and local governments. While some argue that the Fed has...

Persistent link: https://www.econbiz.de/10013301921

How to issue a privacy-preserving central bank digital currency

Grothoff, Christian; Moser, Thomas - 2021

Many central banks are currently investigating Central Bank Digital Currency (CBDC) and possible designs. A recent survey conducted by the European Central Bank has found that both citizens and professionals consider privacy the most important feature of a CBDC. We show how a central bank could...

Persistent link: https://www.econbiz.de/10013314275

How to issue a central bank digital currency

Chaum, David; Grothoff, Christian; Moser, Thomas - 2021

With the emergence of Bitcoin and recently proposed stablecoins from BigTechs, such as Diem (formerly Libra), central banks face growing competition from private actors offering their own digital alternative to physical cash. We do not address the normative question whether a central bank should...

Persistent link: https://www.econbiz.de/10013314276

The Economics of Central Bank Digital Currency

Ahnert, Toni; Assenmacher, 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/10013403003

Special-Purpose Central Bank Digital Currencies : A Proposal

Dorse, Antoni; Barrull, Xavier - 2022

Central banks (CB) around the world are currently exploring the implications of issuing a new form of sovereign currency known as Central Bank Digital Currency (CBDC). Introducing CBDC is a compelling need for governments and CBs alike, as powerful private players have already taken the lead in...

Persistent link: https://www.econbiz.de/10013406502

Effects of Credit Restrictions in the Netherlands and Lessons for Macroprudential Policy

Galati, Gabriele; Kakes, Jan; Moessner, Richhild - 2020

Credit restrictions were used as a monetary policy instrument in the Netherlands from the 1960s to the early 1990s. We study the effects of credit restrictions being active on the balance sheet structure of banks and other financial institutions. We find that banks mainly responded to credit...

Persistent link: https://www.econbiz.de/10014097889

Rules Versus Discretion in Monetary Policy Historically Contemplated

Glasner, David - 2017

Monetary-policy rules are attempts to cope with the implications of having a medium of exchange whose value exceeds its cost of production. Two classes of monetary rules can be identified: (1) price rules that target the value of money in terms of a real commodity, e.g., gold, or in terms of...

Persistent link: https://www.econbiz.de/10014121191