Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/191656
Authors: 
Niepelt, Dirk
Year of Publication: 
2018
Series/Report no.: 
Working Paper 18.02
Abstract: 
I offer a macroeconomic perspective on the "Reserves for All" (RFA) proposal to let the general public use electronic central bank money. After distinguishing RFA from cryptocurrencies and relating the proposal to discussions about narrow banking and the abolition of cash I propose an equivalence result according to which a marginal substitution of outside for inside money does not affect macroeconomic outcomes. I identify key conditions on bank and government (central bank) incentives for equivalence and argue that these conditions likely are violated, implying that RFA would change macroeconomic outcomes. I also relate my analysis to common arguments in the discussion about RFA and point to inconsistencies and open questions.
Subjects: 
central bank digital currency
Fedcoin
CADcoin
e-krona
e-Peso
J Coin
reserves for all
deposits
narrow banking
cash
equivalence
central bank
lender of last resort
politico-economic equivalence
JEL: 
E42
E51
E58
E61
E63
H63
Document Type: 
Working Paper
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