Dokument
Titel: | When Does the Introduction of a New Currency Improve Welfare? |
Autor: | Fuchs, Max |
Weitere Verfasser: | Michaelis, Jochen |
Veröffentlicht: | 2021 |
URI: | https://archiv.ub.uni-marburg.de/es/2024/0682 |
URN: | urn:nbn:de:hebis:04-es2024-06828 |
DOI: | https://doi.org/10.17192/es2024.0682 |
ISSN: | 1867-3678 |
DDC: | 330 Wirtschaft |
Publikationsdatum: | 2024-01-19 |
Lizenz: | https://creativecommons.org/publicdomain/mark/1.0 |
Schlagwörter: |
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digital money, welfare comparison, dual currency regime |
Summary:
In recent years, cryptocurrencies such as Bitcoin have emerged, in upcoming
years, corporate currencies such as Libra (Diem) and central bank digital currencies will emerge even in low-inflation developed economies. Using the dual currency search model of Kiyotaki and Wright (1993), we show how the introduction of a supplement to traditional money affects average utility. The room for a welfare improvement depends on differences in returns and costs, but, in particular, on the fraction of cash traders who will be replaced by digital money traders.
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