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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

A unified framework for CBDC design: remuneration, collateral haircuts and quantity constraints

Assenmacher-Wesche, Katrin; Berentsen, Aleksander; … - 2021

. Timing and information frictions create a need for inside (bank deposits) and outside money (CBDC) to finance production. To … quantity requirements. Less restrictive provision of CBDC reduces bank deposits. A positive interest spread on CBDC or stricter … substitution between bank deposits and CBDC is small. …

Persistent link: https://www.econbiz.de/10012605274

The economics of central bank digital currency

Ahnert, Toni; Assenmacher-Wesche, Katrin; Hoffmann, Peter; … - 2022

Persistent link: https://www.econbiz.de/10014278554

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

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

market that explicitly accounts for the means-of-exchange function of bank deposits and CBDC into a New Keynesian model with …

Persistent link: https://www.econbiz.de/10014374684

CBDC and Business Cycle Dynamics in a New Monetarist New Keynesian Model

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

market that explicitly accounts for the means-of-exchange function of bank deposits and CBDC into a New Keynesian model with …

Persistent link: https://www.econbiz.de/10014354929

Nominal and Real Interest Rates During an Optimal Disinflation in New Keynesian Models

Hagedorn, Marcus - 2008

Central bankers' conventional wisdom suggests that nominal interest rates should be raised to implement a lower inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should be decreased to attain this goal. Real interest rates,...

Persistent link: https://www.econbiz.de/10012772496

Nominal and real interest rates during an optimal disinflation in New Keynesian models.

Hagedorn, Marcus - 2008

Central bankers’ conventional wisdom suggests that nominal interest rates should be raised to implement a lower inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should be decreased to attain this goal. Real interest...

Persistent link: https://www.econbiz.de/10011604924

The Impact of Central Bank Liquidity Support on Banks’ Balance Sheets

de Haan, Leo - 2019

We empirically analyse the relationship between longer term central bank liquidity support and banks' balance sheet ratios, using difference-in-differences panel regressions and propensity score matching on a large sample of banks in the euro area. The research question is whether the liquidity...

Persistent link: https://www.econbiz.de/10012860052

Central Bank Collateral, Asset Fire Sales, Regulation and Liquidity

Bindseil, Ulrich - 2013

This paper analyses the potential roles of bank asset fire sales and recourse to central bank credit to ensure banks' funding liquidity and solvency. Both asset liquidity and central bank haircuts are modelled as power functions within the unit interval. Funding stability is captured as...

Persistent link: https://www.econbiz.de/10013073375

The Implications of Liquidity Regulation for Monetary Policy Implementation and the Central Bank Balance Sheet Size : An Empirical Analysis of the Euro Area

Kedan, Danielle; Ventula Veghazy, Alexia - 2021

We analyse the impact of the Liquidity Coverage Ratio (LCR) on the demand for central bank reserves in the euro area … the cross-country heterogeneity in the regulatory treatment of reserves for LCR purposes prior to the announcement of a … harmonised euro area standard as a quasi-natural experiment, we find evidence that points to LCR-induced demand for reserves …

Persistent link: https://www.econbiz.de/10013243820