Brunnermeier, Markus K.; Niepelt, Dirk (May 2019). On the Equivalence of Private and Public Money (Discussion Papers 19-03). Bern: Department of Economics
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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.
Item Type: |
Working Paper |
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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: |
03 Sep 2020 08:41 |
Last Modified: |
05 Dec 2022 15:40 |
BORIS DOI: |
10.7892/boris.145889 |
URI: |
https://boris.unibe.ch/id/eprint/145889 |
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