A Macroeconomic Model of Central Bank Digital Currency

We thank Joseph Abadi, Katrin Assenmacher, Rhys Bidder, Markus Brunnermeier, Francois Gourio, Pengfei Jia, Todd Keister, Narayana Kocherlakota, Michael Kumhof, Ashley Lannquist, Emi Nakamura, Dirk Niepelt, Anna Orlik, Daniel Sanches, Sanjay Singh, and Jon Steinsson for useful comments and suggestions. The authors are also grateful for comments by seminar and conference participants at the NBER Summer Institute, the Chicago Booth Treasury Markets conference, the AFA meetings, University of Rochester Simon Business School, HEC Lausanne, ECB, CEPR Fintech and Digital Currencies Conference, FRB Philadelphia, Danmarks Nationalbank, King’s College London, SED Barcelona, Fed Macro & Financial Institutions System Meetings, the Bundesbank Conference on Markets and Intermediaries, Goethe University Frankfurt, Bank of England, Bayes Business School, Queen Mary University, UC Davis, Santa Clara University, and Humboldt University Berlin. We thank Caroline Paulson for excellent research assistance. Pascal Paul and Mauricio Ulate are with the Federal Reserve Bank of San Francisco. Cynthia Wu is with the University of Illinois and National Bureau of Economic Research. The views expressed herein are solely those of the authors and do not necessarily represent the views of the Federal Reserve Bank of San Francisco, the Federal Reserve System, or the National Bureau of Economic Research.