Central bank digital currencies are increasingly regarded worldwide as viable means of payment. But how do CBDCs affect welfare when used as stores of value? A recent study investigates the ramifications of CBDCs as public money serving as stores of value, customers’ heterogeneous beliefs about bank stability and how it all impacts banks.
Official sources show institutional investment in euro area real estate quadrupled over the past decade. A new quantitative euro area DSGE model reveals leakages in the macroprudential framework, calling for a countercyclical leverage limit on real estate funds.