by Summary:
VoxEU, August 20, 2018. HTML. To a first approximation, inside and outside money are substitutes—the introduction of CBDC does not change the equilibrium allocation. Bank incentives and central bank incentives might be affected though. CBDC could increase the incentive to extend credit but might undermine the political support for implicit financial assistance to banks.
Topics:
Dirk Niepelt considers the following as important: Central Bank, Central bank digital currency, Contributions, currency, Equivalence, Fiscal equivalence, Means of payment, Payment system, Politico-economic equivalence, Reserves for all
This could be interesting, too:
VoxEU, August 20, 2018. HTML. To a first approximation, inside and outside money are substitutes—the introduction of CBDC does not change the equilibrium allocation. Bank incentives and central bank incentives might be affected though. CBDC could increase the incentive to extend credit but might undermine the political support for implicit financial assistance to banks.
Topics:
Dirk Niepelt considers the following as important: Central Bank, Central bank digital currency, Contributions, currency, Equivalence, Fiscal equivalence, Means of payment, Payment system, Politico-economic equivalence, Reserves for all
This could be interesting, too:
Dirk Niepelt writes The New Keynesian Model and Reality
Dirk Niepelt writes “Money and Banking with Reserves and CBDC,” JF, 2024
Dirk Niepelt writes “Augenwischerei um SNB-Ausschüttungen (Misconceptions about SNB Distributions),” NZZ, 2024
Dirk Niepelt writes Bank of England CBDC Academic Advisory Group
VoxEU, August 20, 2018. HTML.
- To a first approximation, inside and outside money are substitutes—the introduction of CBDC does not change the equilibrium allocation.
- Bank incentives and central bank incentives might be affected though.
- CBDC could increase the incentive to extend credit but might undermine the political support for implicit financial assistance to banks.