Journal of Economic Theory and Econometrics: Journal of the Korean Econometric Society
Home About    Aims and Scope    Editorial Board Submit Archive Search Announcement
Journal of Economic Theory and Econometrics
JETEM/계량경제학보/計量經濟學報/JKES
Journal of the Korean Econometric Society

CBDC and its Implications for Reserve Markets and Central Bank Balance Sheets

Vol.34, No.1, March , 84–117


English Version |  Korean Version
  •   (Bank of Korea)

  •   (Seoul National University)

  •   (Seoul National University)

PDF
Abstract  

The introduction of CBDC is expected to make extensive changes to the financial markets, the financial industries, and the composition of shortterm assets held by the private sector, thereby affecting the implementation and the transmission mechanism of monetary policy. In this regard, this paper analyzes the impact of CBDC introduction on the reserve market, central bank balance sheet, and seigniorage, with the aim to contribute to stable and secure policy operations. Rather than building a new general equilibrium model that structurally reflects CBDC demand, we evaluate and investigate the effects of the introduction by realistically expanding a simple money multiplier model to enable intuitive scenario-based analyses.


Keywords
   central bank digital currency (CBDC), reserve market, central bank balance sheet, open market operation, money demand

JEL classification codes
   E42, E43, E51, E58, G21
Links

KCI
KES
SCOPUS
MathJax