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Too Green to Be True? Forging a Climate Consensus at the European Central Bank

Deyris, Jérôme - 2022

In its strategy review, the European Central Bank's Governing Council unanimously decided to make climate change one of its priorities for the coming years. In this article, we try to understand how this change was achieved, and to what extent it represents a break from central banking as usual....

Persistent link: https://www.econbiz.de/10013405556

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

Quantifying the Costs and Benefits of Quantitative Easing

Levin, Andrew T.; Lu, Brian L.; Nelson, William R. - National Bureau of Economic Research - 2022

We conduct a systematic analysis of the costs and benefits of large-scale securities purchases, using the Federal Reserve's QE4 program as a concrete example. This program was initiated at the onset of the pandemic in March 2020 and continued for two years, leading to a doubling of the Fed's...

Persistent link: https://www.econbiz.de/10013477241

Issuing a wholesale central bank digital currency : why and how

Pfister, Christian - In: Intereconomics : review of European economic policy 59 (2024) 1, pp. 35-40

Although there are currently four retail central bank digital currencies in circulation, no central bank has yet issued the wholesale form of a central bank digital currency. There are good reasons to do so, however, and central banks have already conducted projects in this area. A wholesale...

Persistent link: https://www.econbiz.de/10014477684

DLT options for CBDC

Guo, Sky; Kreitem, Joseph; Moser, Thomas - In: Journal of central banking theory and practice 13 (2024) 1, pp. 57-88

This paper provides an overview of the distributed ledger technology (DLT) options available to central banks for issuing central bank digital currency (CBDC). We discuss the main requirements that a DLT solution must fulfill and analyze the various structures for implementation offered by DLT -...

Persistent link: https://www.econbiz.de/10014496284

Fiscal Consequences of Central Bank Losses

Cecchetti, Stephen G.; Hilscher, Jens - National Bureau of Economic Research - 2024

In response to the Global Financial Crisis, central banks engaged in large-scale asset purchases funded by the issuance of reserves. These "unconventional" policies continued during the pandemic, so that by 2022 central banks' balance sheets had grown up to ten-fold. As a result of rapidly...

Persistent link: https://www.econbiz.de/10014544756

Monetary policy strategies to navigate post-pandemic inflation : an assessment using the ECB's New Area-Wide Model

Darracq Pariès, Matthieu; Kornprobst, Antoine; … - 2024

differ in their "lower-for-longer" commitment as well as policymaker preferences regarding inflation and output volatility … strategies would call for anticipated timing of the start of the hiking cycle: earlier tightening would prevent inflation from … peaking at 10%, but the forceful tightening since 2022:Q3 prevented higher inflation from becoming entrenched. However, once …

Persistent link: https://www.econbiz.de/10014527121

Central bank digital currency and monetary policy implementation

Caccia, Enea; Tapking, Jens; Vlassopoulos, Thomas - 2024

This paper discusses the impact that a retail central bank digital currency (CBDC) could have on the implementation of monetary policy. Monetary policy implementation could be affected if the introduction of the retail CBDC changes the volume of commercial bank deposits held by customers, which...

Persistent link: https://www.econbiz.de/10014517259

Do large TARGET2 balances bear risks for the euro area?

Horst, Maximilian Julius; Neyer, Ulrike - In: Credit and capital markets : Kredit und Kapital 55 (2022) 1, pp. 3-34

Large increases in TARGET2 balances in the euro area since 2008 have led to concern and debate about the appropriate interpretation and policy reaction - in particular in TARGET2 creditor countries such as Germany. Against this background, we examine the main drivers of the increases and...

Persistent link: https://www.econbiz.de/10014518497

CBDC and business cycle dynamics in a New Monetarist New Keynesian model

Assenmacher, Katrin; Bitter, Lea; Ristiniemi, Annukka - 2023

To study implications of an interest-bearing CBDC on the economy, we integrate a New Monetarist-type decentralised market that explicitly accounts for the means-of-exchange function of bank deposits and CBDC into a New Keynesian model with financial frictions. The central bank influences the...

Persistent link: https://www.econbiz.de/10014314330