Author: Harald Uhlig

Publication Central Bank Digital Currency Central Banking for all | Blockchain@X
Publications

Central Bank Digital Currency : Central Banking for all ?

The introduction of a central bank digital currency (CBDC) allows the central bank to engage in large-scale intermediation by competing with private financial intermediaries for deposits. Yet, since a central bank is not an investment expert, it cannot invest in long-term projects itself, but relies on investment banks to do…

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Publication Some Simple Bitcoin Economics | Blockchain@X
Publications

Some Simple Bitcoin Economics

In a novel model of an endowment economy, we analyze coexistence and competition between traditional fiat money (Dollar) and another intrinsically worthless medium of exchange, not controlled by a central bank, such as Bitcoin. Agents can trade consumption goods in either currency or hold on to currency for speculative purposes….

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Publicaton Cryptocurrencies, Currency Competition and the Impossible Trinity | Blockchain@X
Publications

Cryptocurrencies, Currency Competition and the impossible Trinity

We analyze a two-country economy with complete markets, featuring two national currencies as well as a global (crypto)currency. If the global currency is used in both countries, the national nominal interest rates must be equal and the exchange rate between the national currencies is a risk-adjusted martingale. We call the…

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