IDEAS home Printed from https://ideas.repec.org/a/pfq/journl/v72y2026i2p97-111.html

The Monetary Transmission Effects of Central Bank Digital Currency (CBDC) in Hungary: A Simplified DSGE Simulation

Author

Listed:
  • Gyüre, Ferenc

Abstract

The paper examines how the introduction of a moderate, interest-neutral (policy-rate-remunerated) central bank digital currency (CBDC) modifies the short-run transmission of monetary policy in Hungary’s 2025 macroeconomic environment. It extends a baseline New Keynesian DSGE model with a CBDC, in which household savings are split between deposits and CBDC while bank lending is tied to deposits, so deposit substitution can weaken intermediation. Following calibration, simulations and impulse responses suggest that rule-based stabilisation largely remains intact, but the responses of real variables are more muted and adjustment may be slower.

Suggested Citation

  • Gyüre, Ferenc, 2026. "The Monetary Transmission Effects of Central Bank Digital Currency (CBDC) in Hungary: A Simplified DSGE Simulation," Public Finance Quarterly, Corvinus University of Budapest, vol. 72(2), pages 97-111.
    • Handle: RePEc:pfq:journl:v:72:y:2026:i:2:p:97-111
    DOI: https://doi.org/10.35551/PFQ_2026_2_4
    as

    Download full text from publisher

    File URL: https://unipub.lib.uni-corvinus.hu/13161/
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.35551/PFQ_2026_2_4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Systems; Standards; Regimes; Government and the Monetary System
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • 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
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pfq:journl:v:72:y:2026:i:2:p:97-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam Hoffmann (email available below). General contact details of provider: https://edirc.repec.org/data/bkeeehu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.