Monetary Policy Implementation: Past, Present and Future--Will Electronic Money Lead to the Eventual Demise of Central Banking?
Charles Freedman ()
International Finance, 2000, vol. 3, issue 2, 211-27
This paper examines the ways in which central banks influence the very short-term interest rate in regimes with and without reserve requirements. It then examines the implications for monetary policy implementation of the spread of electronic money and the potential for other mechanisms to compete with settlement arrangements at central banks. It concludes that it is extremely unlikely that electronic money will displace bank notes or the settlement services that are offered by central banks in the foreseeable future. Moreover, even in the extremely unlikely case that the spread of stored-value cards leads to the elimination of bank notes and that the development of network money permits alternative settlement services to be offered that effectively competes with central bank services, central banks would very likely be able to continue to influence the very short-term rate of interest. They would therefore be able to maintain their influence over aggregate demand and inflation even in such circumstances. Copyright 2000 by Blackwell Publishers Ltd.
References: Add references at CitEc
Citations: View citations in EconPapers (32) Track citations by RSS feed
Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2000&part=null link to full text (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:intfin:v:3:y:2000:i:2:p:211-27
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1367-0271
Access Statistics for this article
International Finance is currently edited by Benn Steil
More articles in International Finance from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().