Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232929 
Year of Publication: 
2018
Citation: 
[Journal:] Sveriges Riksbank Economic Review [ISSN:] 0348-6583 [Issue:] 3 [Publisher:] Sveriges Riksbank [Place:] Stockholm [Year:] 2018 [Pages:] 43-65
Publisher: 
Sveriges Riksbank, Stockholm
Abstract: 
In this article, we discuss potential implications of an e-krona for the conduct of monetary policy and for macroeconomic developments in general. We argue that a universally accessible, non-interest-bearing e-krona supplied according to demand would establish a zero interest-rate floor for the policy rate and possibly all other interest rates in the economy. The effect of quantitative easing can thereby also be reduced. Furthermore, it is unlikely that the monetary policy transmission mechanism would be strengthened by an e-krona. We also note that international financial flows may increase and induce more exchange rate volatility. Finally, an e-krona could have long-run level effects on economic activity. The effects would be positive if an e-krona improves the efficiency and the resilience of the payment system and negative if an e-krona impinges on the supply of credit and financial stability.
Subjects: 
CBDC
monetary policy
macro economy
JEL: 
E42
E43
E44
E52
E58
Document Type: 
Article
Document Version: 
Published Version
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.