Central Bank Digital Currency And The Future Of Monetary Policy

Michael Bordo and Andrew Levin ()

No 17104, Economics Working Papers from Hoover Institution, Stanford University

Abstract: We consider how a central bank digital currency (CBDC) can transform all aspects of the monetary system and facilitate the systematic and transparent conduct of monetary policy. Drawing on a very long strand of literature in monetary economics, we find a compelling rationale for establishing a CBDC that serves as a stable unit of account, a practically costless medium of exchange, and a secure store of value. In particular, the CBDC should be universally accessible and interest-bearing, and the central bank should adjust its interest rate to foster true price stability.

Keywords: monetary policy frameworks; payment technologies; simple rules. (search for similar items in EconPapers)
JEL-codes: B12 B13 B22 E42 E52 E58 E63 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2017-04
New Economics Papers: this item is included in nep-his, nep-mac, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (177)

Downloads: (external link)
https://www.hoover.org/sites/default/files/researc ... do-levin_updated.pdf

Related works:
Working Paper: Central Bank Digital Currency and the Future of Monetary Policy (2017)
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:hoo:wpaper:17104

Access Statistics for this paper

More papers in Economics Working Papers from Hoover Institution, Stanford University Contact information at EDIRC.
Bibliographic data for series maintained by Webmaster ().