The e-krona and the macroeconomy

Hanna Armelius, Paola Boel, Carl Claussen and Marianne Nessén

EconStor Open Access Articles and Book Chapters, 2018, issue 3, 43-65

Abstract: In this article, we discuss potential implications of an e-krona for the conduct of monetary policy and for macroeconomic developments in general. We argue that a universally accessible, non-interest-bearing e-krona supplied according to demand would establish a zero interest-rate floor for the policy rate and possibly all other interest rates in the economy. The effect of quantitative easing can thereby also be reduced. Furthermore, it is unlikely that the monetary policy transmission mechanism would be strengthened by an e-krona. We also note that international financial flows may increase and induce more exchange rate volatility. Finally, an e-krona could have long-run level effects on economic activity. The effects would be positive if an e-krona improves the efficiency and the resilience of the payment system and negative if an e-krona impinges on the supply of credit and financial stability.

Keywords: CBDC; monetary policy; macro economy (search for similar items in EconPapers)
JEL-codes: E42 E43 E44 E52 E58 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/232929/1/2 ... the-macroeconomy.pdf (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:zbw:espost:232929

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().