infonet-economy

Bolli, Thomas; Caves, Katherine M.; Dändliker, Lena; Morlet, Guillaume Maxence; Pusterla, Filippo; Rageth, Ladina; Renold, Ursula; Sritharan, Aranya

The issuance of retail central bank digital currency (CBDC) entails a transfer of risk from commercial banks to the central bank. While this paper does not provide an overall assessment on whether or not to issue a retail CBDC, it analyzes how different mechanisms to limit the risk transfer, such as an unattractive interest rate on retail CBDC, a quantity ceiling or preventing...

(Working Papers SES ; 524)

Bolli, Thomas; Caves, Katherine M.; Dändliker, Lena; Morlet, Guillaume Maxence; Pusterla, Filippo; Rageth, Ladina; Renold, Ursula; Sritharan, Aranya

Spiegel, Alisa; Slijper, Thomas; de Mey, Yann; Meuwissen, Miranda P.M.; Poortvliet, P. Marijn; Rommel, Jens; Hansson, Helena; Vigani, Mauro; Soriano, Bárbara; Wauters, Erwin; Appel, Franziska; Antonioli, Federico; Gavrilescu, Camelia; Gradziuk, Piotr; Finger, Robert; Feindt, Peter H.

Abberger, Klaus; Abrahamsen, Yngve; Anderes, Marc; Bamert, Justus; Daniele, Maurizio; Eckert, Florian; Funk, Anne Kathrin; Graff, Michael; Kronenberg, Philipp; Mikosch, Heiner; Mühlebach, Nina; Rathke, Alexander; Reinicke, Tim; Sarferaz, Samad; Seiler, Pascal; Siegenthaler, Michael; Siegrist, Stefanie; Streicher, Sina; Sturm, Jan-Egbert

Martínez, Isabel Z.; Pleninger, Regina

Caves, Katherine M.; Oswald-Egg, Maria Esther

We estimate an open economy DSGE model to study the fiscal policy implications of downward nominal wage rigidity (DNWR) in a monetary union. DNWR has significantly exacerbated the recession in the southern euro area countries and is important for the design of fiscal policy. We show that a cut in social security contributions paid by employers (equivalent to wage subsidies) is...