A study on the influence mechanism of CBDC on monetary policy: An analysis based on e-CNY.

ABSTRACT: This paper attempts to introduce central bank digital currency (CBDC) into the analysis framework of monetary policy, and studies the influence mechanism of e-CNY, central bank digital currency in China, on the monetary policy of the central bank from the aspects of money demand, money supply and monetary policy transmission mechanism. The research finds that e-CNY will have significant impact on monetary policy: (1) E-CNY will change the structure of money demand, speed up currency circulation, make central bank reserves more controllable and money supply more intelligent; (2) E-CNY will increase the volatility and expansion effect of currency multiplier to a certain extent; (3) E-CNY will dredge the transmission channel of monetary policy so as to improve the transmission effect of exist

SUBMITTER: Yang J 

PROVIDER: S-EPMC9269387 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature