Central bank digital currencies: policy implications

Central Bank Haircut Policy

The paper develops a model to study the optimal choice of the central bank haircut policy. In the presence of uncertainties regrading liquidity needs and asset prices, there is a trade-off between providing liquidity to constrained agents and controlling the abundance of liquidity in the economy. The choice of the haircut involves balancing impacts on the liquidity positions of agents with diff...

Central Bank Transparency and Monetary Policy Effectiveness

The paper concentrates on the conditions, contingencies and determinants of central bank transparency and communication. From the state of the economy and the quality of national institutions, to the structure of monetary policy committees, the personality of the governor and the nature of the monetary policy framework - with a particular focus on the case of inflation targeting, there i...

Financialization, Rentier Interests, and Central Bank Policy

I thank Jim Crotty for many helpful suggestions, Bob Pollin for very useful discussions on some of the material presented here, Minsik Choi, Dorothy Power and Max Maximov for excellent research assistance and the Ford and Rockefeller Foundations for essential financial support. All errors, of course, are mine and mine alone. Please send comments and suggestions to: [email protected] 2 Ab...

Central Bank Policy: Some First Principles

Steps Toward Identifying Central Bank Policy Preferences

This paper takes the parameters in central bank loss functions as fundamental preferences to be estimated from the data. It is these preferences (along with target values) that define the policy regime in operation and that potentially change with senior central bank appointments. Optimizing central banks apply policy rules whose feedback coefficients are functions of its preferences. Consequen...