Central Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design

被引:10
作者
Chiu, Jonathan [1 ]
Davoodalhosseini, Seyed Mohammadreza [1 ]
机构
[1] Bank Canada, Banking & Payments Dept, Ottawa, ON K1A 0G9, Canada
关键词
central bank digital currency; banking; eneral equilibrium; payments; CREDIT; MONEY; INFLATION; PRIVATE; ECONOMY; FOREIGN; DEMAND; POLICY;
D O I
10.1287/mnsc.2021.02763
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
Many central banks are considering issuing a central bank digital currency (CBDC). How will the CBDC affect the macroeconomy? Will its design matter? To answer these questions, we theoretically and quantitatively assess the effects of a CBDC on consumption, banking, and welfare. Our model captures the competition between different means of payments and incorporates a novel general equilibrium feedback effect from transactions to deposits creation. The general equilibrium effects of a CBDC are decomposed into three channels: payment efficiency, price effects, and bank funding costs. We show that a cash-like CBDC is more effective than a deposit-like CBDC in promoting consumption and welfare. Interestingly, a cash-like CBDC can also crowd in banking, even in the absence of bank market power. In a calibrated model, at the maximum, a cash-like CBDC can increase bank intermediation by 10.2% and welfare by 0.059%, and it can capture up to 23.3% of the payment market. We also discuss some lessons for designing a CBDC.
引用
收藏
页码:6708 / 6730
页数:23
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