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Monetary Policy

In: Central Bank Digital Currency

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  • Leo Kriese

Abstract

This chapter enquires the relation of central bank digital currency and monetary policy. First, it presents how monetary policy normally functions. Then, it examines how central bank digital currency can be linked to that. Here, the chapter pays special attention to the impact of CBDC on the monetary policy transmission. In addition, it focuses on the highly debated topic of remunerating holdings, in particular using negative interest rates. The chapter links that to the fundamental right to property under Article 17 of the European Charta of Fundamental Rights. Furthermore, the chapter examines whether CBDC can be seen as a new tool of monetary policy.

Suggested Citation

  • Leo Kriese, 2023. "Monetary Policy," Springer Books, in: Central Bank Digital Currency, chapter 0, pages 189-205, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-44738-9_9
    DOI: 10.1007/978-3-031-44738-9_9
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