On the Equivalence of Private and Public Money

Citation:

Brunnermeier, Markus K., and Dirk Niepelt. “On the Equivalence of Private and Public Money”. Working Paper: n. pag. Print.

Abstract:

We propose a generic model of money and liquidity. We provide sufficient conditions under which a swap of private (inside) against public (outside) money leaves the equilibrium allocation and price system unchanged. We apply the results to Central Bank Digital Currency, the "Chicago Plan", and the Indian de-monetization experiment.

Last updated on 01/02/2019