Broadening narrow money: monetary policy with a central bank digital currency

Jack Meaning, Ben Dyson (), James Barker () and Emily Clayton ()
Additional contact information
Ben Dyson: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
James Barker: University of Exeter
Emily Clayton: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH

No 724, Bank of England working papers from Bank of England

Abstract: This paper discusses central bank digital currency (CBDC) and its potential impact on the monetary transmission mechanism. We first offer a general definition of CBDC which should make the concept accessible to a wide range of economists and policy practitioners. We then investigate how CBDC could affect the various stages of transmission, from markets for central bank money to the real economy. We conclude that monetary policy would be able to operate much as it does now, by varying the price or quantity of central bank money, and that transmission may even strengthen for a given change in policy instruments.

Keywords: Central bank digital currency; money; monetary policy; cryptocurrency (search for similar items in EconPapers)
JEL-codes: E42 E52 E58 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2018-05-18
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-pay
References: Add references at CitEc
Citations: View citations in EconPapers (59)

Downloads: (external link)
https://www.bankofengland.co.uk/-/media/boe/files/ ... 5561581EF8B4A8AFFA52 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:0724

Access Statistics for this paper

More papers in Bank of England working papers from Bank of England Bank of England, Threadneedle Street, London, EC2R 8AH. Contact information at EDIRC.
Bibliographic data for series maintained by Digital Media Team ().