On the Equivalence of Private and Public Money
| Autor: | Markus K. Brunnermeier, Dirk Niepelt |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Money creation Indisch equivalence Monetary economics Outside money Inside money Swap (finance) E50 monetary system outside money 0502 economics and business CBDC sovereign money Economics ddc:330 G10 050207 economics 050205 econometrics 05 social sciences Münzgewinn Price system money creation Market liquidity Geldschöpfung 330 Economics Währungssystem Digital currency Virtuelle Währung Bargeldloser Zahlungsverkehr inside money Credit crunch Amerikanisch E40 H60 Finance Chicago Plan |
| Zdroj: | Brunnermeier, Markus K.; Niepelt, Dirk (May 2019). On the Equivalence of Private and Public Money (NBER Working Paper Series 25877). Cambridge, MA: National Bureau of Economic Research 10.3386/w25877 Brunnermeier, Markus K.; Niepelt, Dirk (May 2019). On the Equivalence of Private and Public Money (Discussion Papers 19-03). Bern: Department of Economics |
| DOI: | 10.3386/w25877 |
| Popis: | When does a swap between private and public money leave the equilibrium allocation and price system unchanged? To answer this question, the paper sets up a generic model of money and liquidity which identifies sources of seignorage rents and liquidity bubbles. We derive sufficient conditions for equivalence and apply them in the context of the “Chicago Plan”, cryptocurrencies, the Indian de-monetization experiment, and Central Bank Digital Currency (CBDC). Our results imply that CBDC coupled with central bank pass-through funding need not imply a credit crunch nor undermine financial stability. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|