Central Bank Equity as an Instrument of Monetary Policy
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F20%3A10393801" target="_blank" >RIV/00216208:11230/20:10393801 - isvavai.cz</a>
Alternative codes found
RIV/70883521:28120/19:63523483
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=BaOC6gc_fC" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=BaOC6gc_fC</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1057/s41294-019-00092-1" target="_blank" >10.1057/s41294-019-00092-1</a>
Alternative languages
Result language
angličtina
Original language name
Central Bank Equity as an Instrument of Monetary Policy
Original language description
We examine the use of central bank equity as an unconventional monetary policy tool. In this setting, a central bank employs digital currency to transfer digital cash to each household, thus supporting consumption directly when needed. The asset side of the central bank's balance sheet remains unchanged, and the creation of new digital cash is offset by a decrease in central bank equity. The central bank thus incurs an immediate loss but does not take on any additional risks for its future income statements. We address several objections to this policy, paying particular attention to the claim that weakening the financial strength of the central bank endangers long-term price stability. Through a meta-analysis of 176 estimates reported previously in the literature, we find that central bank financial strength has not historically correlated with inflation performance.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
<a href="/en/project/GA18-02513S" target="_blank" >GA18-02513S: Meta-Analyses of Stock Return Determinants</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Comparative economic studies
ISSN
0888-7233
e-ISSN
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Volume of the periodical
62
Issue of the periodical within the volume
1
Country of publishing house
US - UNITED STATES
Number of pages
20
Pages from-to
49-68
UT code for WoS article
000516603900003
EID of the result in the Scopus database
2-s2.0-85064690711