Central bank digital currency in small open economies
This paper examines how the introduction of Central Bank Digital Currency (CBDC) impacts small open economies (SOE). We build a Two-Agent New Keynesian (TANK) model with financially constrained agents, where both cash and CBDC provide liquidity service. CBDC lowers the cost of carrying liquid assets...
| Published in: | Latin American Journal of Central Banking |
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| Main Authors: | , , |
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-06-01
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| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666143824000334 |