Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/206540 
Autor:innen: 
Erscheinungsjahr: 
2019
Schriftenreihe/Nr.: 
DICE Discussion Paper No. 327
Verlag: 
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Düsseldorf
Zusammenfassung: 
The elimination of large-denomination banknotes is one of several options to relax the effective-lower-bound constraint on nominal interest rates. We explore timing issues associated with the calling-in of large notes from a central banker's perspective and employ an optimal stopping model to show how the volatility and the expected path of the natural rate of interest determine an optimal timing strategy. Our model shows that such a strategy can involve a wait-and-see component analogously to an optimal exercise rule for a perpetual American option. In practice, a wait-and-see component might induce a central banker not to call in large notes until the natural rate has fallen to an exceptionally low level.
Schlagwörter: 
cashless economy
phase-out of paper currency
wait-and-see policy
optionvalue
JEL: 
E42
E58
ISBN: 
978-3-86304-326-1
Dokumentart: 
Working Paper

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