VoxEU, March 20, 2019, with Markus Brunnermeier. HTML. Both proponents and opponents have suggested that CBDC would fundamentally change the macroeconomy, either for the better or the worse. We question this paradigm. We derive an equivalence result according to which the introduction of CBDC need not alter the allocation nor the price system. And we argue that key concerns put forward in discussions about CBDC are misplaced. See also our VoxEU book chapter and my paper from last year.
Topics:
Dirk Niepelt considers the following as important: bank run, Central Bank, Central bank digital currency, Contributions, currency, Equivalence, Pass through, Reserves for all
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Dirk Niepelt writes Bank of England CBDC Academic Advisory Group
Dirk Niepelt writes Panel on “Will the digital euro take off?,” CEPR, 2023
Dirk Niepelt writes Conference on “The Macroeconomic Implications of Central Bank Digital Currencies,” CEPR/ECB, 2023
VoxEU, March 20, 2019, with Markus Brunnermeier. HTML.
Both proponents and opponents have suggested that CBDC would fundamentally change the macroeconomy, either for the better or the worse. We question this paradigm. We derive an equivalence result according to which the introduction of CBDC need not alter the allocation nor the price system. And we argue that key concerns put forward in discussions about CBDC are misplaced.
See also our VoxEU book chapter and my paper from last year.