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Fractional reserve regimes generate fragile banking, and full reserve regimes (e.g., narrow banking) remove fragility at the cost of suppressing the role of banks as lenders. A Central Bank Digital Currency (CBDC) could provide safe money, but at the cost of potentially disrupting bank lending....
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This study investigates the evolution of central bank profits as fiscal revenue (or: seigniorage)before and in the … monetary policies are seeing their gradual“normalization.”Seigniorage exposes the connections between currency issuance and … normal times seigniorage largely derives from the note issue supplementedby “own” resources. Essentially, the central bank …
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This paper discusses central bank digital currency (CBDC) and its potential impact on the monetary transmission mechanism. We first offer a general definition of CBDC which should make the concept accessible to a wide range of economists and policy practitioners. We then investigate how CBDC...
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