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The Model of a Shared Interest Rate for a Group of Countries to Circulate a Digital Currency: Featuring the BRICS

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  • Mikhail V. Zharikov

    (Financial University under the Government of the Russian Federation, Moscow, Russian Federation)

Abstract

The purpose of the research is to offer a comparative analysis of a libertarian and gradual approach to introducing a market interest rate. The topic is time-relevant since the economies of the emerging markets today face difficult challenges posed by economic, financial and health-care crises, impending price stability, future growth and money market equilibrium. A digital currency is a special issue today due to the outbreak of covid-19, which has made many central banks think about contactless means of payment. The author revealed policy tools to circulate a hypothetical digital currency for the BRICS, including a shared interest rate and the quantity of digital money in circulation needed for the penta-lateral use. The theoretical significance is that the research tries to lay the foundation for a model to launch a virtual regional money market for the countries of the BRICS as well as their partners in wider parts of Europe and Asia. In practical terms, the article recommends a number of tools for monetary policy to deal with the coronavirus crisis of 2020.

Suggested Citation

  • Mikhail V. Zharikov, 2022. "The Model of a Shared Interest Rate for a Group of Countries to Circulate a Digital Currency: Featuring the BRICS," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 11(2), pages 187-208.
    • Handle: RePEc:cbk:journl:v:11:y:2022:i:2:p:187-208
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    More about this item

    Keywords

    BRICS; digital currency; virtual money market; shared interest rate; liberal and gradualist approaches; credit surplus; digital money revenue.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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