Year: 2019
Type: report
Abstract: If the global economy encounters another severe adverse shock in coming years, will major central banks be able to provide sufficient monetary stimulus to preserve price stability and foster economic recovery?Our empirical analysis indicates that the Federal Reserve's QE3 program was not an effective form of monetary stimulus and that unconventional monetary policies undertaken in the Eurozone and in Japan have been similarly limited in impact.We then consider how digital cash could bolster the effectiveness of monetary policy, and we characterize some potential steps for implementing digital cash via public-private partnerships between the central bank and supervised financial institutions.Our analysis indicates that digital cash could significantly enhance the stability of the financial system.
DOI: 10.3386/w25455
Authors: Michael Bordo, Andrew Levin
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2909548249