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Central Bank Digital Currency and the Future of Monetary Policy

Listed author(s):
  • Michael D. Bordo
  • Andrew T. Levin

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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 23711.

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Date of creation: Aug 2017
Handle: RePEc:nbr:nberwo:23711
Note: ME
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