Tootfinder

Central Bank Digital Currency: Demand Shocks and Optimal Monetary Policy
Hanfeng Chen, Maria Elena Filippin
https://arxiv.org/abs/2507.15048 https://

Central Bank Digital Currency: Demand Shocks and Optimal Monetary Policy
We study the implications of a central bank digital currency (CBDC) for the transmission of household preference shocks and for welfare in a New Keynesian framework where the CBDC competes with bank deposits for household resources and banks have market power. We show that an increase in the benefit of CBDC has a mildly expansionary effect, weakening bank market power and significantly reducing the deposit spread. As households economize on liquid asset holdings, they reduce both CBDC and depos…

Monetary policy, supply shocks, and retail energy prices https://www.sciencedirect.com/science/article/pii/S0140988325004220 @…

Can We Reliably Predict the Fed's Next Move? A Multi-Modal Approach to U.S. Monetary Policy Forecasting
Fiona Xiao Jingyi, Lili Liu
https://arxiv.org/abs/2506.22763

Can We Reliably Predict the Fed's Next Move? A Multi-Modal Approach to U.S. Monetary Policy Forecasting
Forecasting central bank policy decisions remains a persistent challenge for investors, financial institutions, and policymakers due to the wide-reaching impact of monetary actions. In particular, anticipating shifts in the U.S. federal funds rate is vital for risk management and trading strategies. Traditional methods relying only on structured macroeconomic indicators often fall short in capturing the forward-looking cues embedded in central bank communications. This study examines whether …

Green Shields: The Role of ESG in Uncertain Time
Fatih Kansoy, Dominykas Stasiulaitis
https://arxiv.org/abs/2506.02143 https://arxiv.…

Green Shields: The Role of ESG in Uncertain Time
The rapid growth of sustainable investing, now exceeding 35 trillion USD globally, has transformed financial markets, yet the implications for monetary policy transmission remain underexplored. While existing literature documents heterogeneous firm responses to monetary policy through traditional channels such as size and leverage, it remains unknown whether environmental, social, and governance (ESG) characteristics create distinct transmission mechanisms. Using high-frequency identification a…

Replaced article(s) found for econ.TH. https://arxiv.org/list/econ.TH/new
[1/1]:
Auctions with Tokens: Monetary Policy as a Mechanism Design Choice