In only a few years, central banks have rapidly ramped up research and development of central bank digital currencies (CBDCs). A growing body of economic research is informing central banks’ efforts, often focusing on the “reserves for all” aspect of CBDCs for retail use. However, CBDCs...

This paper draws lessons on the central bank underpinnings of money from the rise and fall of the Bank of Amsterdam (1609-1820). The Bank started out as a "stablecoin": it issued deposits backed by silver and gold coins, and settled payments by transfers across deposits. Over time, it performed...

Central banks can operate with negative equity, and many have done so in history without undermining trust in fiat money. However, there are limits. How negative can central bank equity be before fiat money loses credibility? We address this question using a global games approach motivated by...