Does a CBDC Reinforce Inefficiencies?
This paper examines whether a central bank digital currency (CBDC) reinforces inefficiencies in transactions with cash. In this case, the gap between the traded quantity and the welfare-maximizing one, which arises due to discounting or a suboptimal amount of money, increases further. To get some a...
में बचाया:
में प्रकाशित: | MAGKS - Joint Discussion Paper Series in Economics (Band 28-2022) |
---|---|
मुख्य लेखक: | |
स्वरूप: | लेख |
भाषा: | अंग्रेज़ी |
प्रकाशित: |
Philipps-Universität Marburg
2022
|
विषय: | |
ऑनलाइन पहुंच: | पीडीएफ पूर्ण पाठ |
टैग: |
टैग जोड़ें
कोई टैग नहीं, इस रिकॉर्ड को टैग करने वाले पहले व्यक्ति बनें!
|
सारांश: | This paper examines whether a central bank digital currency (CBDC)
reinforces inefficiencies in transactions with cash. In this case, the gap between the traded quantity and the welfare-maximizing one, which arises due to discounting or a suboptimal amount of money, increases further. To get some answers, the monetary search model of Trejos and Wright (1995) is extended by a CBDC. We show that an interest-bearing CBDC reinforces inefficiencies in transactions with cash since opportunity costs for cash holders and money supply increase. Nevertheless, a CBDC is able to increase welfare as long as the share of CBDC holders is limited. |
---|---|
भौतिक वर्णन: | 20 Seiten |
आईएसएसएन: | 1867-3678 |
डिजिटल ऑब्जेक्ट पहचानकर्ता: | 10.17192/es2024.0736 |