Niepelt, Dirk (July 2018). Reserves For All? Central Bank Digital Currency, Deposits, and their (Non)-Equivalence (Discussion Papers 18-13). Bern: Department of Economics
|
Text
dp1813.pdf - Published Version Available under License Creative Commons: Attribution (CC-BY). Download (347kB) | Preview |
I offer a macroeconomic perspective on the “Reserves for All” (RFA) proposal to let the general public use electronic central bank money. After distinguishing RFA from cryptocurrencies and relating the proposal to discussions about narrow banking and the abolition of cash I propose an equivalence result according to which a marginal substitution of outside for inside money does not affect macroeconomic outcomes. I identify key conditions on bank and government (central bank) incentives for equivalence and argue that these conditions likely are violated, implying that RFA would change macroeconomic outcomes. I also relate my analysis to common arguments in the discussion about RFA and point to inconsistencies and open questions.
Item Type: |
Working Paper |
|---|---|
Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Niepelt, Dirk |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Series: |
Discussion Papers |
Publisher: |
Department of Economics |
Language: |
English |
Submitter: |
Lars Tschannen |
Date Deposited: |
02 Sep 2020 12:05 |
Last Modified: |
05 Dec 2022 15:40 |
JEL Classification: |
E42, E51, E58, E61, E63, H63 |
BORIS DOI: |
10.7892/boris.145862 |
URI: |
https://boris.unibe.ch/id/eprint/145862 |
Actions (login required)
 |
Edit item |