Central Bank Digital Currency and the Future of Monetary Policy
32 Pages Posted: 21 Aug 2017 Last revised: 16 Apr 2023
Date Written: August 2017
Abstract
We consider how a central bank digital currency (CBDC) could transform all aspects of the monetary system and facilitate the systematic and transparent conduct of monetary policy. In particular, we find that CBDC can serve as a practically costless medium of exchange, secure store of value, and stable unit of account. To achieve these criteria, CBDC would be account-based and interest-bearing, and the monetary policy framework would foster true price stability.
Suggested Citation: Suggested Citation
Bordo, Michael D. and Levin, Andrew T., Central Bank Digital Currency and the Future of Monetary Policy (August 2017). NBER Working Paper No. w23711, Available at SSRN: https://ssrn.com/abstract=3023109
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