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Central Bank Digital Currencies: A Monetary Macroeconomic Analysis

Author

Listed:
  • Mastromatteo, Giuseppe

    (Catholic University of Milan, Italy)

  • Rossi, Sergio

    (University of Fribourg, Switzerland)

Abstract

This paper analyses the macroeconomic aspects related to central bank digital currencies (CBDCs) to understand how they could affect both monetary policy implementation and its transmission mechanisms. It also investigates how the acceleration of CBDC projects can be an effective response to the consequences of a fragmentation of globalisation. The first section presents the scope and challenges of a digital euro, as imagined by the European Central Bank. The second section analyses the central banks’ considerations about introducing a CBDC in the United States and the United Kingdom. The third section investigates the effects a CBDC implies for the monetary policy decisions of a central bank in the global economy. The fourth section considers various possible implications of a CBDC for the banking sector, as regards in particular the market for financial services. The fifth section examines some important geopolitical issues that influence the struggle for international financial and currency hegemony. Monete digitali delle banche centrali: una analisi macroeconomica monetaria Questo articolo analizza gli aspetti macroeconomici legati alle monete digitali delle banche centrali (CBDC) per capire come possano influire sull’attuazione della politica monetaria e sui suoi meccanismi di trasmissione. Inoltre, questo articolo analizza come l’accelerazione dei progetti di CBDC possa essere una risposta efficace alle conseguenze della frammentazione della globalizzazione. La prima sezione presenta la portata e le sfide di un euro digitale, come immaginato dalla Banca centrale europea. La seconda sezione analizza le considerazioni delle banche centrali sull’introduzione di una CBDC negli Stati Uniti e nel Regno Unito. La terza sezione analizza gli effetti che una CBDC comporta per le decisioni di politica monetaria di una banca centrale nell’economia globale. La quarta sezione considera le possibili implicazioni di una CBDC per il settore bancario, in particolare per quanto riguarda il mercato dei servizi finanziari. La quinta sezione esamina alcune importanti questioni geopolitiche che influenzano la lotta per l’egemonia finanziaria e monetaria internazionale.

Suggested Citation

  • Mastromatteo, Giuseppe & Rossi, Sergio, 2023. "Central Bank Digital Currencies: A Monetary Macroeconomic Analysis," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 76(3), pages 387-416.
    • Handle: RePEc:ris:ecoint:0950
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    References listed on IDEAS

    as
    1. Agur, Itai & Ari, Anil & Dell’Ariccia, Giovanni, 2022. "Designing central bank digital currencies," Journal of Monetary Economics, Elsevier, vol. 125(C), pages 62-79.
    2. Sergio Rossi, 2015. "Structural reforms in payment systems to avoid another systemic crisis," Review of Keynesian Economics, Edward Elgar Publishing, vol. 3(2), pages 213-225, April.
    3. David Andolfatto, 2021. "Assessing the Impact of Central Bank Digital Currency on Private Banks," The Economic Journal, Royal Economic Society, vol. 131(634), pages 525-540.
    4. Chen, Hongyi & Siklos, Pierre L., 2022. "Central bank digital currency: A review and some macro-financial implications," Journal of Financial Stability, Elsevier, vol. 60(C).
    5. Sergio Rossi, 2019. "The dangerous ineffectiveness of negative interest rates: the case of Switzerland," Review of Keynesian Economics, Edward Elgar Publishing, vol. 7(2), pages 220-232, April.
    6. Jack Meaning & Ben Dyson & James Barker & Emily Clayton, 2021. "Broadening Narrow Money: Monetary Policy with a Central Bank Digital Currency," International Journal of Central Banking, International Journal of Central Banking, vol. 17(2), pages 1-42, June.
    7. Bini Smaghi, Lorenzo, 2023. "Central Bank Digital Currency: Is it Really Needed?," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 76(3), pages 417-428.
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    Cited by:

    1. Beltrametti, Luca & Pittaluga, Giovanni Battista, 2023. "Monetary Policy Implications of Stablecoins and CBDCs," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 76(3), pages 453-478.

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    More about this item

    Keywords

    Central Bank Digital Currencies; Monetary Policy; Payment Systems;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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