00000nam 2200000za 4500 9.867626 CaOODSP 20221107162350 cr ||||||||||| 190125s2019 onc #o f|0| 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2019-1E-PDF Zhu, Yu, 1966- A framework for analyzing monetary policy in an economy with e-money [electronic resource] / by Yu Zhu and Scott Hendry. Ottawa, Ontario : Bank of Canada, 2019. ii, 54 p. Bank of Canada staff working paper, 1701-9397 ; 2019-1 "January 2019." Includes bibliographic references. "This paper considers an economy where central-bank-issued fiat money competes with privately issued e-money. We study a policy-setting game between the central bank and the e-money issuer and find (1) the optimal monetary policy of the central bank depends on the policy of the private issuer and may deviate from the Friedman rule; (2) there may exist multiple equilibria; (3) when the economy approaches a cashless state, the central bank’s optimal policy improves the market power of the e-money issuer and can lead to a discrete decrease in welfare and a discrete increase in inflation; and (4) first best cannot be achieved. Central-bank-issued e-money leads to a simple optimal policy that achieves the first best"--Abstract. Includes abstract in French. gccst Monetary policy gccst Electronic commerce Hendry, Scott. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2019-1. (CaOODSP)9.806221 PDF 1.38 MB https://publications.gc.ca/collections/collection_2019/banque-bank-canada/FB3-5-2019-1-eng.pdf