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Rise of the central bank digital currencies : drivers, approaches and technologies

Auer, Raphael A.; Cornelli, Giulio; Frost, Jon - 2020

Central bank digital currencies (CBDCs) are receiving more attention than ever before. Yet the motivations for issuance vary across countries, as do the policy approaches and technical designs. We investigate the economic and institutional drivers of CBDC development and take stock of design...

Persistent link: https://www.econbiz.de/10012306593

A monetary equilibrium with the lender of last resort

Matsuoka, Tarishi; Watanabe, Makoto - 2023

reserves (a liquidity crisis) occurs endogenously. We show that discount window lending by the LLR is welfare-improving but … reduces banks' ex-ante incentive to hold monetary reserves, which increases the probability of a liquidity crisis, and can …

Persistent link: https://www.econbiz.de/10014283905

Limits of monetary policy autonomy by East Asian debtor central banks

Löffler, Axel; Schnabl, Gunther; Schobert, Franziska - 2012

thereby increase surplus liquidity. East Asian central banks with more flexible exchange rate regimes also face surplus … liquidity that mainly emanates from past accumulation of foreign reserves. We show based on an augmented Barro …-Gordon-type central bank loss function that in both cases surplus liquidity limits monetary policy autonomy. In case of fixed exchange …

Persistent link: https://www.econbiz.de/10009500749

Monetary policy transparency

Geraats, Petra M. - 2014

There has been a remarkable rise in the transparency of monetary policy during the last two decades. This paper provides an overview of the ways in which central banks have been providing more information about their monetary policymaking. Furthermore, it reviews the theoretical literature on...

Persistent link: https://www.econbiz.de/10010237274

Equilibrium contracts for the central bank of a monetary union

Dixit, Avinash K.; Jensen, Henrik - 2000

We consider the political economy of a monetary union wheremember governments attempt to influence the policy of the commoncentral bank. Modeling this as a common agency with incentivecontracts, we show that if incentives are all that matters for the bank,the equilibrium implements a weighted...

Persistent link: https://www.econbiz.de/10011397656

Forward guidance contracts

Gersbach, Hans; Hahn, Volker; Liu, Yulin - 2015 - This version: May 2015

when the economy is stuck in a liquidity trap. Utilizing the New Keynesian Framework, we establish the properties of simple …

Persistent link: https://www.econbiz.de/10010528970

Can the Central Bank alleviate fiscal burdens?

Reis, Ricardo - 2017

Central banks affect the resources available to fiscal authorities through the impact of their policies on the public debt, as well as through their income, their mix of assets, their liabilities, and their own solvency. This paper inspects the ability of the central bank to alleviate the fiscal...

Persistent link: https://www.econbiz.de/10011704682

The failure of ECB monetary policy from a Mises-Hayek perspective

Schnabl, Gunther - 2017

combined with the theory of optimum currency areas. It shows how since the turn of the millennium a too expansionary monetary …

Persistent link: https://www.econbiz.de/10011619626

Monetary policy surprises and exchange rate behavior

Gürkaynak, Refet S.; Kara, Ali Hakan; Kısacıkoğlu, … - 2020

Central banks unexpectedly tightening policy rates often observe the exchange value of their currency depreciate, rather than appreciate as predicted by standard models. We document this for Fed and ECB policy days using eventstudies and ask whether an information effect, where the public...

Persistent link: https://www.econbiz.de/10012287994

Banking crises and central bank digital currency in a monetary economy

Matsuoka, Tarishi; Watanabe, Makoto - 2025

This paper examines the role of Central Bank Digital Currency (CBDC) in a monetary model in which fundamental-based bank runs arise endogenously. We demonstrate that introducing a CBDC designed to replicate the properties of cash displaces physical cash and, when offered at a sufficiently...

Persistent link: https://www.econbiz.de/10015409522