On the Equivalence of Private and Public Money

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 7741

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Money and Interest Rates: General ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; General Financial Markets: General (includes Measurement and Data) ; National Budget, Deficit, and Debt: General
• Thema: money creation ; monetary system ; inside money ; outside money ; equivalence ; CBDC ; Chicago Plan ; sovereign money

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Brunnermeier, Markus K. ; Niepelt, Dirk
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/201967
• Letzte Aktualisierung: 20.09.2024, 08:22 MESZ