Monday , September 16 2019
Home / Dirk Niepelt / “On the Equivalence of Private and Public Money,” CEPR, 2019

“On the Equivalence of Private and Public Money,” CEPR, 2019

Summary:
CEPR Discussion Paper 13778, June 2019, with Markus Brunnermeier. PDF. (Local copy of NBER wp.) We develop a generic model of money and liquidity that identifies sources of liquidity bubbles and seignorage rents. We provide sufficient conditions under which a swap of monies leaves the equilibrium allocation and price system unchanged. We apply the equivalence result to the “Chicago Plan,” cryptocurrencies, the Indian de-monetization experiment, and Central Bank Digital Currency (CBDC). In particular, we show why CBDC need not undermine financial stability.

Topics:
Dirk Niepelt considers the following as important: , , , , , , , ,

This could be interesting, too:

Dirk Niepelt writes “Libra Paves the Way for Central Bank Digital Currency,” VoxEU, 2019

Dirk Niepelt writes “On the Equivalence of Private and Public Money,” JME, 2019

Dirk Niepelt writes “On the Equivalence of Private and Public Money,” JME, 2019

Dirk Niepelt writes Jean-Pierre Landau Argues for CBDC

CEPR Discussion Paper 13778, June 2019, with Markus Brunnermeier. PDF. (Local copy of NBER wp.)

We develop a generic model of money and liquidity that identifies sources of liquidity bubbles and seignorage rents. We provide sufficient conditions under which a swap of monies leaves the equilibrium allocation and price system unchanged. We apply the equivalence result to the “Chicago Plan,” cryptocurrencies, the Indian de-monetization experiment, and Central Bank Digital Currency (CBDC). In particular, we show why CBDC need not undermine financial stability.

Dirk Niepelt
Dirk Niepelt is Director of the Study Center Gerzensee and Professor at the University of Bern. A research fellow at the Centre for Economic Policy Research (CEPR, London), CESifo (Munich) research network member and member of the macroeconomic committee of the Verein für Socialpolitik, he served on the board of the Swiss Society of Economics and Statistics and was an invited professor at the University of Lausanne as well as a visiting professor at the Institute for International Economic Studies (IIES) at Stockholm University.

Leave a Reply

Your email address will not be published. Required fields are marked *