The E-Money Revolution: Challenges and Implications for Monetary Policy

Thomas Palley

Journal of Post Keynesian Economics, 2001, vol. 24, issue 2, 217-233

Abstract: The e-revolution promises to introduce new e-monies that may ultimately displace existing money. E-money poses a challenge to central banks’ ability to control interest rates, and it may also increase endogenous financial instability. The challenge to interest rate control stems from the possibility that e-money may diminish the financial system’s demand for central bank liabilities, rendering central banks unable to conduct meaningful open market operations. Increasedfinancial instability could emerge from the increased elasticity of private money production, and from periodic runs out of e-money into central bank money that generate liquidity crises.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/01603477.2001.11490324 (text/html)
Access to full text is restricted to subscribers.

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:mes:postke:v:24:y:2001:i:2:p:217-233

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MPKE20

DOI: 10.1080/01603477.2001.11490324

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().