Findings on Economics Reported by Investigators at Cornell University (A Simple Model of a Central Bank Digital Currency): Economics

2024 AUG 01 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on Economics. According to news reporting out of Ithaca, New York, by NewsRx editors, research stated, “Develop a general equilibrium model that highlights the trade-offs between physical and digital forms of retail central bank money.”

Our news journalists obtained a quote from the research from Cornell University, “The key differences between cash and central bank digital currency (CBDC) include transaction efficiency, possibilities for tax evasion, and, potentially, nominal rates of return. We establish conditions under which cash and CBDC can co-exist and show how government policies can influence relative holdings of cash, CBDC, and other assets.”

According to the news editors, the research concluded: “We illustrate how a CBDC can facilitate negative nominal interest rates and helicopter drops, and also how a CBDC can be structured to prevent capital flight from other assets.”

This research has been peer-reviewed.

For more information on this research see: A Simple Model of a Central Bank Digital Currency. Journal of Financial Stability, 2024;73. Journal of Financial Stability can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; Journal of Financial Stability - http://www.journals.elsevier.com/journal-of-financial-stability/)

Our news journalists report that additional information may be obtained by contacting Eswar Prasad, Cornell University, Dept. of Economics, Ithaca, NY 14853, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jfs.2024.101282. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.