Monetary Economics: Central Banks - Policies & Impacts eJournal最新文献

{"title":"After Libra, Digital Yuan and COVID-19: Central Bank Digital Currencies and the New World of Money and Payment Systems","authors":"Anton N Didenko, D. Zetzsche, D. Arner, Ross P. Buckley","doi":"10.2139/ssrn.3622311","DOIUrl":"https://doi.org/10.2139/ssrn.3622311","url":null,"abstract":"Technology, money and payment systems have been interlinked from the earliest days of human civilization. But of late technology has reshaped money and payment systems to an extent and speed never before seen. Milestones include the establishment of M-Pesa in Kenya in 2007 (creating mobile money systems), Bitcoin in 2009 (triggering in time the explosive growth in distributed ledger technology and blockchain), the announcement of Libra in 2019 (triggering a fundamental rethinking of the potential impact of technology on global monetary affairs), and the announcement of China’s central bank digital currency – the Digital Currency / Electronic Payment (DCEP) referred herein to as Digital Yuan (marking the first launch by a major economy of a sovereign digital currency). \u0000 \u0000The COVID-19 pandemic and crisis of 2020 has spurred electronic payments in ways never before seen. In this paper, we ask the question: In the context of the crisis and beyond, what role can technology play in improving the effectiveness of money and payment systems around the world? \u0000 \u0000This paper analyses the impact of distributed ledger technologies and blockchain on monetary and payment systems. It particularly considers the policy issues and choices associated with cryptocurrencies, stablecoins and sovereign (central bank) digital currencies. We examine how the catalysts reshaping monetary and payment systems around the world – Bitcoin, Libra, China’s DCEP, COVID-19 – challenge regulators and give rise to different levels of disruption. While the thousands of Bitcoin progenies were able to be ignored, safely, by regulators, Facebook’s proposed Libra, a global stablecoin, brought an immediate and potent response from regulators globally. This proposal by the private sector to move into the traditional preserve of sovereigns – the minting of currency – was always likely to provoke a roll-out of sovereign digital currencies by central banks. China has moved first, among major economies, with its Digital Yuan – the initiative that may well trigger a chain reaction of central bank digital currency issuance across the globe. \u0000 \u0000In contrast, in the COVID-19 crisis, we argue most central banks should focus not on rolling out novel new forms of blockchain-based money but rather on transforming their payment systems: this is where the real benefits will lie both in the crisis and beyond. Looking forward, neither the extreme private nor public model is likely to prevail. Rather, we expect the reshaping of domestic money and payment systems to involve public central banks cooperating with (new and old) private entities which together will provide the potential to build better monetary and payment systems at the domestic and international level. Under this model, for the first time in history, technology will enable the merger of the monetary and payment systems.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124439655","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Post COVID-19 Fractal Economics and Economies","authors":"Kartik Hegadekatti","doi":"10.2139/ssrn.3599223","DOIUrl":"https://doi.org/10.2139/ssrn.3599223","url":null,"abstract":"Due to the COVID-19 pandemic and its accompanying 'lockdowns', Global economic growth will be nil or negative for some time to come. Due to large scale quarantine measures, economic activity that entails social gatherings or presence of crowds is also no longer possible or encouraged. This paper deals with providing a solution by envisaging a wholly different Post COVID-19 economy. Such Economies will be Fractal economies. <br><br>First, we discuss the Impact of COVID-19 on the Global economy. Then I introduce the concept of a Fractal economy dependent on Social and Economic Lines of Interaction (SELOI). Finally, we discuss the various aspects of Fractal economies that make it radically different from the Pre COVID-19 economies that earlier existed.<br>","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"92 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115023709","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Fed’s Municipal Liquidity Facility: Present & Future Possibilities & Necessities","authors":"R. Hockett","doi":"10.2139/ssrn.3597732","DOIUrl":"https://doi.org/10.2139/ssrn.3597732","url":null,"abstract":"The Fed's new Community QE Facility, which is unprecedented in Fed history, will function as a literal lifeline to States and their Subdivisions. But it remains, precisely because of its novelty, unfamiliar and possibly even off-putting or intimidating to many State and City financial officers, not to mention Mayors, Governors, City Councils and State Legislatures. It also continues to fall short of what will be required if our States, our Cities, and our federal polity itself, which the present White House occupancy is doing virtually nothing to assist, are to survive the present pandemic. \u0000 \u0000Continuing unfamiliarity on the part of State and City officials with Community QE raises the danger that those in serious need of funding to address the present pandemic will not seek or receive it. It also diminishes the likelihood that City and State officials will press the Fed to do a further easing of terms – and this form of pressure will be critical if the Facility is to do all that it’s meant to do. \u0000 \u0000This Memorandum is meant to solve those two problems. It first briefly summarizes what the newly eased MLF enables now. It then addresses what the new Facility probably will, and, at least as importantly, must enable in future. The Memorandum then closes with an updated three-phase ‘Game Plan’ for States and Cities to put into operation the moment the Fed makes clear that the MLF is not a mere ‘virtue signal,’ but a sincere offer of badly needed funding – by actually beginning to provide funding.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127737701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"COVID Crisis: Fiscal, Monetary and Macro-financial Policy Responses","authors":"P. Sarker","doi":"10.2139/ssrn.3601524","DOIUrl":"https://doi.org/10.2139/ssrn.3601524","url":null,"abstract":"The ongoing COVID-19 pandemic in the world is deepening a profound impact and economic uncertainty. In essence, lockdown and social distancing measures are triggering losses in global production, supply, trades, investments, and employment. This article, to counteract the economic losses and macroeconomic uncertainty, explores the policy evolution of macroeconomic effects during the COVID-19 pandemic. It has communicated different policy responses addressing the potential economic damages in the G-7 countries and 24 emerging market economies (EMEs). The article also illustrates the lockdown and regulatory implications and dynamic economic interventions mandated by the governments, monetary authorities, and central banks. The study demonstrates the potential impact of fiscal, monetary, and macro-financial policy measures on the economic losses caused by regulatory and quarantine measures. Monetary authorities and central banks are lowering the policy rates like repurchase agreement rate (repo), reverse repo, cash reserve requirement (CRR) to ease the liquidity supplies to the economy. Central banks also offered credit facilities to cater to the demand for loans and advances. The study finds that G-7 economies and emerging market economies have implemented a comprehensive fast-track fiscal, monetary, and macro-financial policy to counteract the pandemic’s negative economic consequences. The policy measures include the fiscal stimulus package, direct spending, loans, and credit facilities, refinancing schemes, swap agreement, discount loan window, tax cut on credit, short term loan extension, bridge finance, policy rate cuts, bond purchase, SMEs financing. These policy measures, if implemented successfully, are predicted to minimize the impact of the crisis and to stabilize the economies.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115131131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"When Could Macroprudential and Monetary Policies Be in Conflict?","authors":"Jose D. Garcia Revelo, Grégory Levieuge","doi":"10.2139/ssrn.3607125","DOIUrl":"https://doi.org/10.2139/ssrn.3607125","url":null,"abstract":"This paper aims to provide a comprehensive analysis of the potential conflicts between macroprudential and monetary policies within a DGSE model with financial frictions. The identification of conflicts is conditional on different types of shocks, different policy instruments, and different policy objectives (variance of key variables, probability of a crisis, growth-at-risk). We first find that conflicts are not systematic but are fairly frequent, especially in the case of supply-side and widespread shocks such as technology and bank capital shocks. Second, monetary policy and countercyclical capital requirements generate conflicts in many circumstances. By affecting interest rates, they both “get in all the cracks”, albeit with their respective targets generally moving in opposite directions. Nonetheless, monetary policy could reduce its adverse financial side effects by responding strongly to the output gap. Third, loan-to-value caps, as sector-specific instruments, cause few conflicts. Thus, they can be easily implemented without concerns about generating potential spillovers, whereas smooth coordination is required between the implementation of capital requirements and of monetary policy.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128927307","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economics - 2020: What Happens When Everything Shuts Down Except the 'Money Printing Presses'","authors":"A. Murphy","doi":"10.2139/ssrn.3585905","DOIUrl":"https://doi.org/10.2139/ssrn.3585905","url":null,"abstract":"This short paper indicates how the massive fiscal deficits financed by creation of fiat money by central banks worldwide (undertaken in response to the 2020 coronavirus pandemic) may lead to an inflationary depression. In particular, the supply disruptions caused by the pandemic inhibit the production of real goods and services necessary to absorb the extensive money printing to fund the large amounts of government spending could lead to an increase in the prices of real goods and services that is comparable to that occurring during the hyperinflation in Germany in 1923 except on a broad international scale.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124096083","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Monetary Policy and Speculative Spillovers in Financial Markets","authors":"Rıza Demirer, David Gabauer, Rangan Gupta, Qiang Ji","doi":"10.2139/ssrn.3578169","DOIUrl":"https://doi.org/10.2139/ssrn.3578169","url":null,"abstract":"Abstract This paper examines the role of monetary policy (MP) as a driver of connectedness patterns in speculative activities in financial markets. Examining measures of speculation in four major markets including gold, equities, Treasury bonds and crude oil, we show that speculative activities can spill over across markets with the stock market generally serving as the main transmitter of speculative shocks. While unconventional MP is associated with greater connectedness of speculative activities in financial markets, we also find that unconventional (conventional) MP drives gold (financial assets) to serve as a net transmitter of speculative shocks to the other markets. The findings establish an important link between the monetary policy signals and trading behavior in financial markets with significant policy implications.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124478827","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Unconventional Monetary Policies: A Stock-Taking Exercise","authors":"C. Pfister, Jean‐Guillaume Sahuc","doi":"10.2139/ssrn.3571973","DOIUrl":"https://doi.org/10.2139/ssrn.3571973","url":null,"abstract":"This paper takes stock of the literature on unconventional monetary policies, from their implementation to their effects on the economy. In particular, we discuss in detail the two main measures implemented in most developed economies, namely forward guidance and large-scale asset purchases. Overall, there is near consensus that these measures have been useful, although there are a few dissenting views. Because unconventional monetary policies have left their mark on economies and on the balance sheets of central banks, we offer insights into their legacy and ask whether they have led to a change in “the rules of the game” for setting interest rates and choosing the size and composition of central banks’ balance sheets. Finally, we discuss whether to modify the objectives and the instruments of monetary policy in the future, in comparison with the pre-crisis situation.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"5 5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130095718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Анализ финансовой стабильности как дополнительной цели политики центральных банков (Analysis of Financial Atability as an Additional Goal of the Policy of Central Banks)","authors":"Anna Kiyutsevskaya, Pavel Trunin, Elena Dzhaokhadze, Ludmila Gadiy, Maria Chembulatova","doi":"10.2139/ssrn.3633776","DOIUrl":"https://doi.org/10.2139/ssrn.3633776","url":null,"abstract":"<b>Russian Abstract:</b> После мирового финансового кризиса перед монетарными властями большого числа стран была поставлена дополнительная цель, заключающаяся в обеспечении финансовой стабильности. Сложность реализации данной задачи состоит в отсутствии не только общепринятого определения финансовой стабильности, но и ее количественного индикатора финансового состояния. Более того, нет единого мнения о соотношении основной для большинства центральных банков цели по обеспечению ценовой стабильности и стабильности финансовой системы. Полученные оценки по соотношению целей Банка России по обеспечению ценовой и финансовой стабильности позволяют заключить, что противоречия между этими целями возникают только в неблагоприятных условиях (периоды кризиса). Это позволяет использовать процентную политику в том числе для поддержания стабильности финансового рынка.<br><br><b>English Abstract:</b> After the global financial crisis, financial stability became an additional goal of monetary authorities. The complexity of implementation of this goal stems not only from the absence of a generally accepted definition of financial stability, but also from the lack of its quantitative indicators. Moreover, there is no consensus about the link between the main central bank goal of ensuring price stability and financial stability. Our estimates of the link between the Bank of Russia's goals of price and financial stability show that contradictions between these goals arise only in adverse conditions (crisis periods). This allows the Bank of Russia to use its interest rate policy to maintain the stability of the financial market.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126787518","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Effectiveness of Currency Intervention in a Commodity-Exporter: Evidence from Mongolia","authors":"Victor Pontines, Davaajargal Luvsannyam, Enkhjin Atarbaatar, Ulziikhutag Munkhtsetseg","doi":"10.2139/ssrn.3564763","DOIUrl":"https://doi.org/10.2139/ssrn.3564763","url":null,"abstract":"Although EME central banks actively intervene in currency markets, there is a long-running debate as to its effectiveness in affecting exchange rates. In this study, we use unique daily data on currency interventions in Mongolia to analyze the impact of these interventions on the changes in the MNT/USD exchange rate. The results indicate that currency intervention is effective in Mongolia, although it differs in certain ways. Currency sales are effective in moving changes in the MNT/USD in the correct direction, especially when carried out in larger amounts and when implemented frequently. This effect can last from one to three weeks, although we find the magnitude of the daily effect to be relatively small. We do not find evidence, however, that currency purchases are effective. These findings are comparable to the existing literature on the effectiveness of intervention in EMEs.","PeriodicalId":145273,"journal":{"name":"Monetary Economics: Central Banks - Policies & Impacts eJournal","volume":"319 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133348129","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}