nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2021‒07‒12
twenty-six papers chosen by

  1. Distrust or speculation? the socioeconomic drivers of U.S. cryptocurrency investments By Raphael Auer; David Tercero-Lucas
  2. East Asia and East Africa: Different Ways to Digitalize Payments By Qing Xu
  3. Central Banks and Digital Currencies By Tobias Adrian; Michael Junho Lee; Tommaso Mancini-Griffoli; Antoine Martin
  4. Community Banks and Digital Innovation By Patrick T. Harker
  5. Epidemic Exposure, Fintech Adoption, and the Digital Divide By Saka, Orkun; Eichengreen, Barry; Aksoy, Cevat Giray
  6. The Effects of Government Licensing on E-commerce: Evidence from Alibaba By Ginger Zhe Jin; Zhentong Lu; Xiaolu Zhou; Chunxiao Li
  7. Technologie Blockchain et intermédiation dans l'industrie musicale By Laurent Bach; Remy Guichardaz; Éric Schenk
  8. How resilient are sharing economy platforms during pandemic times? By Belleflamme, Paul; Li, Muxin; Périlleux, Anaïs; Strowel, Alain
  9. Optimal Central Banking Policies: Envisioning the Post-Digital Yuan Economy with Loan Prime Rate-setting By King Yoong Lim; Chunping Liu; Shuonan Zhang
  10. Estimating Consumer Inertia in Repeated Choices of Smartphones* By Lukasz Grzybowski; Ambre Nicolle
  11. El Salvador’s Bitcoin Law is Destined to Be Caught in the FATF’s Regulatory Web By Hanke, Steve; Hanlon, Nicholas; Thakkar, Parth
  12. Enhancing digital diffusion for higher productivity in Spain By Yosuke Jin
  13. Price Competition Online: Branded Websites, Marketplace Selling and Price Competition By Oksana Loginova
  14. A tale of paper and gold: the material history of money in South Africa By Gardner, Leigh
  15. Examine The Role of Online Travel Agents to Increase Room Occupancy By Hermawan, Hary; Wijayanto, Rudi; , Prihatno; Sinangjoyo, Nikasius Jonet
  16. Hold the Check: Overdrafts, Fee Caps, and Financial Inclusion By Jennifer L. Dlugosz; Brian T. Melzer; Donald P. Morgan
  17. On the Unification of Centralized and Decentralized Clearing Mechanisms in Financial Networks By Ketelaars, Martijn; Borm, Peter
  18. The nexus between domestic investment and economic growth in G7 countries; Does internet matter? By Bakari, Sayef
  19. Information or persuasion in the mortgage market: the role of brand names By Agnese Carella; Valentina Michelangeli
  20. Banking the Unbanked: The Past and Future of the Free Checking Account By Stein Berre; Kristian S. Blickle; Rajashri Chakrabarti
  21. Leverage Constraints and Bank Monitoring: Bank Regulation versus Monetary Policy By Florian B\¨oser; Hans Gersbach
  22. Think differently about market exchanges: potential and limits of local alternative currencies By Ronan Divard; Patrick Gabriel
  23. Latin American Experiments in Central Banking at the Onset of the Great Depression By Flores Zendejas, Juan; Nodari, Gianandrea
  24. Measuring and Evaluating Strategic Communications at the Bank of Canada By Annie Portelance
  25. Central banking for a social-ecological transformation By Cahen-Fourot, Louison
  26. Parachute Pants and Central Bank Money: a speech at the 113th Annual Utah Bankers Association Convention, Sun Valley, Idaho, June 28, 2021 By Randal K. Quarles

  1. By: Raphael Auer; David Tercero-Lucas
    Abstract: Employing representative data from the U.S. Survey of Consumer Payment Choice, we disprove the hypothesis that cryptocurrency investors are motivatedby distrust in fiat currencies or regulated finance. Compared with the general population, investors show no differences in their level of security concerns with either cash or commercial banking services. We find that cryptocurrency investors tend to be educated, young and digital natives. In recent years, a gap in ownership of cryptocurrencies across genders has emerged. We examine how investor characteristics vary across cryptocurrencies and show that owners of cryptocurrencies increasingly tend to hold their investment for longer periods.
    Keywords: digital currencies, cryptocurrencies, distributed ledger technology, blockchain, payments, digitalisation, banking, household finance, money, bitcoin, ether, xrp, bitcoin cash, litecoin, stellar, eos
    JEL: D14 D91 E42 G11 G12 G28 O33
    Date: 2021–07
  2. By: Qing Xu (Université Côte d'Azur, France; GREDEG CNRS)
    Abstract: Financial digitalization leads to the global payment revolution. M-payment is one of the essential digital payment methods that increase the efficiency of financial and economic activities, especially for developing countries. This chapter presents different development paths and adoption models of m-payment in East Asia & East Africa. China and South Korea are examples of third-party platform-led mobile payment models; Japan is an example of a bank-based mobile payment model; while East African countries implemented originally a mobile operator-led model and then moved toward a hybrid model with more banks and mobile operators involvement. It presents finally some concluding remarks and reflections on other world regions.
    Keywords: digitalize payments, mobile payment, mobile payment operational models, East Asia, East Africa
    JEL: E42 E44 G23
    Date: 2021–06
  3. By: Tobias Adrian; Michael Junho Lee; Tommaso Mancini-Griffoli; Antoine Martin
    Abstract: Recent developments in payments technology raise important questions about the role of central banks either in providing a digital currency themselves or in supporting the development of digital currencies by private actors, as some authors of this post have discussed in a recent IMF blog post. In this post, we consider two ways a central bank could choose to become involved with digital currencies and discuss some implications of these potential choices.
    Keywords: central bank digital currency; stablecoin
    JEL: E58 E42
    Date: 2021–06–23
  4. By: Patrick T. Harker
    Abstract: During opening remarks at the virtual Innovation Office Hours, Philadelphia Fed President Patrick Harker underscored the importance of facilitating face-to-face discussions between banks and fintech firms. “Constructive dialogue among banks, fintech firms, and the Federal Reserve will help us to listen and learn from each other,” he said. The series allows supervised financial institutions and nonbank fintech firms to meet with Fed staff to discuss financial technology innovation.
    Date: 2021–06–28
  5. By: Saka, Orkun; Eichengreen, Barry; Aksoy, Cevat Giray
    Abstract: We ask whether epidemic exposure leads to a shift in financial technology usage within and across countries and if so who participates in this shift. We exploit a dataset combining Gallup World Polls and Global Findex surveys for some 250,000 individuals in 140 countries, merging them with information on the incidence of epidemics and local 3G internet infrastructure. Epidemic exposure is associated with an increase in remote-access (online/mobile) banking and substitution from bank branch-based to ATM-based activity. Using a machine-learning algorithm, we show that heterogeneity in this response centers on the age, income and employment of respondents. Young, high-income earners in full-time employment have the greatest propensity to shift to online/mobile transactions in response to epidemics. These effects are larger for individuals in subnational regions with better ex ante 3G signal coverage, highlighting the role of the digital divide in adaption to new technologies necessitated by adverse external shocks.
    Date: 2021–07–02
  6. By: Ginger Zhe Jin; Zhentong Lu; Xiaolu Zhou; Chunxiao Li
    Abstract: Using proprietary data from Alibaba, we examine how the 2015 Food Safety Law (FSL) affects e commerce in China. The FSL requires most food sellers on e-commerce platforms to obtain a valid online license for retail food handling. Because the FSL was rolled out progressively, we have a rare opportunity to observe a gradual transition from voluntary certification to partial licensing and mandatory licensing. Data summary shows that, conditional on sellers with valid licensing information, those that had a better online reputation and more online food sales before the FSL tend to display their FSL license earlier on the platform, and buyers are more willing to transact with a seller after she displays her FSL license. This positive response is stronger for younger and less reputable sellers, suggesting that the license provides useful information in addition to what consumers observe on the platform. To identify the causal impact of the FSL, we compare food and non-food categories via synthetic control matching. We find that the average quality of surviving food sellers has improved after partial and mandatory licensing, partly because those who are unwilling to obtain the FSL license must exit the platform. Despite an increase in seller concentration, the platform's gross merchandise value in the food category did not decline post FSL, nor did the average sales price increase significantly one year into the full enforcement of the FSL. This suggests that the FSL does not hamper the long-run performance of the regulated market, probably because it has enhanced seller quality and market transparency on the platform.
    Keywords: Market structure and pricing; Recent economic and financial developments
    JEL: D82 K23 L5 L81
    Date: 2021–07
  7. By: Laurent Bach (BETA - Bureau d'Économie Théorique et Appliquée - UL - Université de Lorraine - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Remy Guichardaz (BETA - Bureau d'Économie Théorique et Appliquée - UL - Université de Lorraine - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Éric Schenk (BETA - Bureau d'Économie Théorique et Appliquée - UL - Université de Lorraine - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Recent technological developments have led to a questioning of the intermediation activities of the dominant players in the music industry. After reorganizing their resources and competences, these players have redeployed their functions around 360° strategies. Among emerging technologies, the Blockchain is often presented as a disintermediation tool. Indeed, it allows information to be stored or transactions to be carried out without recourse to a central control body. Through a qualitative methodology, this article aims to propose a prospective analysis of the impact of the Blockchain on intermediation within the music industry.
    Abstract: Les évolutions technologiques récentes ont entraîné une remise en cause des activités d'intermédiation des acteurs dominants de l'industrie musicale. Après une réorganisation de leurs ressources et de leurs compétences, ces dernières ont su redéployer leurs fonctions autour de stratégies à 360°. Parmi les technologies émergentes, la blockchain est souvent présentée comme un outil de désintermédiation. En effet, elle permet de stocker des informations ou d'effectuer des transactions sans recourir à un organe central de contrôle. À l'aide d'une méthodologie qualitative, cet article propose une analyse prospective de l'impact de la blockchain sur l'intermédiation au sein de l'industrie musicale.
    Keywords: Platforms,Music Industry,Intermediaries,Blockchain,Industrie musicale,Intermédiation,Plateformes
    Date: 2021–05–20
  8. By: Belleflamme, Paul (Université catholique de Louvain, LIDAM/CORE, Belgium); Li, Muxin (Université catholique de Louvain, LIDAM/CORE, Belgium); Périlleux, Anaïs (Université catholique de Louvain, LIDAM/IRES, Belgium); Strowel, Alain (Université catholique de Louvain)
    Abstract: We contribute to the discussion on the resilience of sharing economy platforms (SEPs) in pandemic times. We distinguish SEPs according to how the pandemic affects their respective supply and demand sides (both sides contract, sides get unbalanced, or both sides expand). Within each category, we discuss how SEPs (both for-profit and prosocial) bear up against the threats and/or exploit the opportunities raised by the pandemic; we also compare SEPs to “pipelines” (integrated firms). Analyzing specific examples through the lens of management science, economics and legal studies, we formulate three conjectures: (1) although SEPs may benefit from lower operating costs in the short run, network effects might accelerate their decline in the long run; (2) yet, network effects also make SEPs better-equipped than pipelines to seize new opportunities emerging in pandemic times; (3) prosocial SEPs are more flexible than profit-oriented SEPs in responding to social needs during difficult times.
    Keywords: Digital platforms, resilience, sharing economy, Covid-19
    JEL: L21 L31 L86 M13 M14 K24
    Date: 2021–07–01
  9. By: King Yoong Lim; Chunping Liu; Shuonan Zhang
    Abstract: We develop a DSGE model with cash and digital currency to study the financial stability properties of two potential central banking policies in China. Specifically, a Loan Prime Rate (LPR)-setting policy function and central bank digital currency (CBDC) implementation are examined. Distinguish between a benchmark model and a "Post-CBDC world", we Bayesian-estimate the model. Post-CBDC implementation, we find macroeconomic variables to display greater procyclicality to real shocks. However, we also find a potential LPR-setting policy to exhibit an improved stabilization property in the post-CBDC world. We uncover an optimal design of LPR policy function, which targets more specifically housing and capital asset markets, as well as the growth in CBDC. This suggests a potential policy complementarity between these two seemingly unrelated central banking policies in the financial stability agenda of China going forward.
    Keywords: China, Digital Currency, Loan Prime Rate, Monetary Policy, Bayesian DSGE models.
    JEL: E4 E52 E58 C11
    Date: 2021–06
  10. By: Lukasz Grzybowski (SES - Département Sciences Economiques et Sociales - Télécom ParisTech, ECOGE - Economie Gestion - I3, une unité mixte de recherche CNRS (UMR 9217) - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique - X - École polytechnique - Télécom ParisTech - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, IP Paris - Institut Polytechnique de Paris); Ambre Nicolle (ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz])
    Abstract: For a sample of 9,799 subscribers to a single mobile operator, we observe switching between mobile handsets between July 2011 and December 2014. We estimate a discrete choice model in which we account for disutility from switching to different operating systems and brands. Our estimation results indicate the presence of significant inertia in the choice of operating systems and brands. We use our model to simulate market shares in the absence of switching costs and conclude that the market shares of Android and smaller operating systems would increase at the expense of the market share of iOS in such context.
    Keywords: Android,iOS,Mixed Logit,Switching Costs,Consumer Inertia,Smartphones
    Date: 2021
  11. By: Hanke, Steve (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise); Hanlon, Nicholas (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise); Thakkar, Parth (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise)
    Abstract: In the middle of the night of June 8th, El Salvador’s Congress hastily passed the Bitcoin Law. This law will make bitcoin legal tender (actually, forced tender). Since the modalities concerning the implementation of the Bitcoin Law change with each passing day, we cannot opine on the details surrounding the scheduled launch of the Bitcoin Law on September 7, 2021. That said, it’s abundantly clear that if the Bitcoin Law is actually implemented, El Salvadoran banks, merchants, and their customers will cross swords with Financial Action Task Force regulators and be ensnared in the FATF’s web of regulations.
    Date: 2021–07–02
  12. By: Yosuke Jin
    Abstract: The increased adoption of digital technologies has been transforming the Spanish economy. The COVID-19 crisis is expected to speed up this process. The new digital strategy, ‘Digital Spain 2025’, features a number of ambitious objectives in a timely manner. There is a need to promote digital diffusion across the country by developing communication infrastructure further, while addressing the digital divide across regions and ensuring digital security. Addressing key bottlenecks, such as people’s skills, through education policies at every level, would enable the use of digital technologies and boost productivity growth. This would help in particular laggard firms and low-skilled people, making the benefits of digitalisation shared by all. In parallel, R&D should be enhanced to lift the capacity of firms to adopt and use digital technologies effectively, resulting in improving their business models and products. Finally, business dynamism should be revitalised to encourage risk taking among firms, thus facilitating digital diffusion, while ensuring an efficient allocation of capital.
    Keywords: business environment, digitalisation, intangible assets, productivity, risk capital, skills
    JEL: L1 L2 O1
    Date: 2021–07–06
  13. By: Oksana Loginova (Department of Economics, University of Missouri)
    Abstract: I consider a market for differentiated products with an online marketplace (the platform) and two types of firms. Marketplace firms sell through the platform. Branded firms sell to consumers directly and, if they choose so, through the platform. When a branded firm joins the platform, the firm expands its reach beyond its branded website/physical store(s) to consumers who visit the platform for all their purchases. The drawback is that the firm has to pay a referral fee for all sales on the platform, some of which are from its loyal consumers who would otherwise have purchased from the firm directly. I investigate the role of the firm composition in determining the equilibrium outcome. Interestingly, a higher fraction of branded firms translates into more firms on the platform and intense price competition. In the midst of the COVID-19 pandemic consumers who used to shop at physical stores turn to the platform. I show that if they do (do not) look into other products, more (fewer) branded firms will join the platform in equilibrium.
    Keywords: pricing, competition, online marketplace, platform, brands
    JEL: C72 D43 L11 L13 M31
    Date: 2021
  14. By: Gardner, Leigh
    Abstract: This paper uses the South African objects in the National Numismatic Collection of the Smithsonian to tell a new material history of money in South Africa. In other parts of the continent, research about the currencies in use and how these changed over time have offered a new perspective on the impact of colonialism, commercialization, and the rise of state capacity. South Africa, and southern Africa more generally, has remained on the periphery of these debates. This paper begins to fill this gap. It shows that even in Africa’s most financially developed region, the process of establishing a stable national currency was long and halting, reflecting struggles over South Africa’s relationship with the global economy and the rise and fall of apartheid.
    Keywords: South Africa; money; banking; state capacity; REF Impact Fund; Taylor & Francis deal
    JEL: N47 N17
    Date: 2021–06–07
  15. By: Hermawan, Hary (Sekolah Tinggi Pariwisata AMPTA Yogyakarta, Indonesia); Wijayanto, Rudi; , Prihatno; Sinangjoyo, Nikasius Jonet
    Abstract: Online Travel Agent (OTA) is an online-based start-up company that serves ticket purchases, hotel room reservations, and tourist attraction ticket purchases. One of the many OTA companies that collaborate with accommodation providers is Traveloka. Balkondes Sakapitu has used OTA, in this case, Traveloka as a partner in selling its products in the form of rooms. This study aims to analyze the role of OTA in increasing room occupancy in Balkondes Sakapitu. This research is qualitative research with a case study research design. This study indicates that OTA plays an essential role in increasing room occupancy at Balkondes Sakapitu. The increase in room occupancy is measured by the number of online reservation levels through Traveloka within three months from October to December 2020. The role of increasing room occupancy, the use of OTA in this case Traveloka includes: showing the position or position of the hotel based on reviews from guests and a forum for promotion and sales. There are advantages and disadvantages of using Traveloka for Balkondes Sakapitu. These advantages include marketing personnel's efficiency, saving operational costs, easy to change prices, and statistical data reports. While the drawbacks: the difference in sales prices, long payment tempo, and needed qualified HR. The strength of this research, when compared with previous research, is that this study reveals the pattern of cooperation between the hotel and OTA, and discusses the distribution of commission amounts that in previous studies not discussed.
    Date: 2021–03–28
  16. By: Jennifer L. Dlugosz; Brian T. Melzer; Donald P. Morgan
    Abstract: The 25 percent of low-income Americans without a checking account operate in a separate but unequal financial world. Instead of paying for things with cheap, convenient debit cards and checks, they get by with “fringe” payment providers like check cashers, money transfer, and other alternatives. Costly overdrafts rank high among reasons why households “bounce out” of the banking system and some observers have advocated capping overdraft fees to promote inclusion. Our recent paper finds unintended (if predictable) effects of overdraft fee caps. Studying a case where fee caps were selectively relaxed for some banks, we find higher fees at the unbound banks, but also increased overdraft credit supply, lower bounced check rates, and more low-income households with checking accounts. That said, we recognize that overdraft credit is expensive, sometimes more than even payday loans. In lieu of caps, we see increased overdraft credit competition and transparency as alternative paths to cheaper deposit accounts and increased inclusion.
    Keywords: overdrafts; unbanked; inclusion; price ceilings; bounced checks
    JEL: G21 G28
    Date: 2021–06–30
  17. By: Ketelaars, Martijn (Tilburg University, School of Economics and Management); Borm, Peter (Tilburg University, School of Economics and Management)
    Date: 2021
  18. By: Bakari, Sayef
    Abstract: We examine the effect of the Internet on the relationship between domestic investment and economic growth. Data for G7 countries over the period 1991–2018 are used for panel data analysis. Empirical analaysis prove that domestic investment affect positively on economic growth, however the internet dont has any effect on economic growth. Also, the effect of domestic investment on economic growth proves to be not affected by the Internet.
    Keywords: Domestic Investment, Economic Growth, Internet, G7 Countries, Panel Data Analysis
    JEL: O31 O32 O38 O47 O5
    Date: 2021
  19. By: Agnese Carella (Bank of Italy); Valentina Michelangeli (Bank of Italy)
    Abstract: The role, informative or persuasive, of brand names in driving purchasing decisions is very much under debate. We exploit the rebranding of a mortgage lender to analyse households’ choice behaviour in response to brand popularity. Loan-level data on new mortgages suggest that (1) brand awareness reduces the equilibrium price of residential mortgage contracts and (2) the reduction mainly reflects consumers’ selection of cheaper products due to better information. Our calibrated model implies an overall gain equal to 6 per cent of the initial loan amount and a roughly 10 percentage point increase in the share of households that shift to cheaper lenders.
    Keywords: brand, mortgages, household finance
    JEL: D12 D15 D83 G21 G51
    Date: 2021–06
  20. By: Stein Berre; Kristian S. Blickle; Rajashri Chakrabarti
    Abstract: About one in twenty American households are unbanked (meaning they do not have a demand deposit or checking account) and many more are underbanked (meaning they do not have the range of bank-provided financial services they need). Unbanked and underbanked households are more likely to be lower-income households and households of color. Inadequate access to financial services pushes the unbanked to use high-cost alternatives for their transactional needs and can also hinder access to credit when households need it. That, in turn, can have adverse effects on the financial health, educational opportunities, and welfare of unbanked households, thereby aggravating economic inequality. Why is access to financial services so uneven? The roots to part of this problem are historical, and in this post we will look back four decades to changes in regulation, shifts in the ownership structure of retail financial services, and the decline of free/low-cost checking accounts in the United States to search out a few of the contributory factors.
    Keywords: unbanked; banks; mutual banks; fintech
    JEL: G1 G2
    Date: 2021–06–30
  21. By: Florian B\¨oser (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland); Hans Gersbach (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland)
    Abstract: Bank leverage constraints can emerge from regulatory capital requirements as well as from central bank collateral requirements in reserve lending facilities. While these two channels are usually examined separately, we are able to compare them with the help of a bank money creation model in which central bank reserves have to be acquired to settle interbank liabilities. In particular, we show that with regard to bank monitoring, monetary policy via collateral requirements leads to a unique collateral leverage channel, which cannot be replicated by standard capital requirements. Through this channel, banks can expand loan supply and deposit issuance when they face liquidity constraints, by raising the collateral value of their loans with tighter monitoring of firms. The collateral leverage channel can improve welfare beyond standard bank capital regulation. Our results may inform current policy debates, such as the design of central bank collateral frameworks or the question whether monetary policy remains effective in times with large central bank reserves.
    Keywords: leverage, banks, monitoring, bank regulation, monetary policy
    JEL: E42 E52 E58 G21
    Date: 2021–06
  22. By: Ronan Divard (UBO - Université de Brest, LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris]); Patrick Gabriel (UBO - Université de Brest, LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris])
    Abstract: In addition to official currencies, a large number of local alternative currencies have been developed to address not only economic but also social and environmental issues and, more generally, to rethink our relationship with trade. This article aims to analyze the interest and limitations of alternative local monetary systems in all their diversity, and to help identify the conditions that could allow these systems, which remain for the most part confined to confidentiality, to weigh more significantly.
    Abstract: A côté des monnaies officielles, se sont développées de nombreuses monnaies alternatives locales, qui visent à répondre à des enjeux non seulement économiques, mais également sociaux et environnementaux et, de manière plus globale, à repenser notre rapport aux échanges marchands. Cet article vise à analyser l'intérêt et les limites des systèmes monétaires locaux alternatifs dans toute leur diversité, et à contribuer à identifier les conditions qui pourraient permettre à ces systèmes, qui restent pour la plupart confinés dans la confidentialité, à peser de manière plus significative.
    Keywords: monetary system,LET'S,local alternative currency,local currency,système monétaire,SEL,Accorderie,monnaie locale,monnaie-temps,monnaie locale complémentaire,transition écologique,responsabilité sociétale,monnaie locale alternative,time-based currency,local complementary currency,ecological transition,social responsibility
    Date: 2020–02
  23. By: Flores Zendejas, Juan; Nodari, Gianandrea
    Abstract: This chapter analyzes the role of central banks during the first years of the Great Depression. The literature has focused on central banks' loss of autonomy and on the implementation of innovative, countercyclical monetary policies which fostered economic recovery but also led to higher rates of inflation and exchange rate volatility. However, we show that these kinds of policies had been foreseen by foreign advisors before and during the crisis. Policymakers had been reluctant to implement them due to the fear of a loss of credibility for the gold standard regime. Furthermore, we show that in most cases this shift was short-lived and central banks could avert, to a large extent, the problem of fiscal dominance. Central banks became effective actors, channeling credit to the real economy and also supporting the emergence of state institutions that would promote the development of local industry.
    Keywords: Central banking, Great Depression, Gold standard, Money doctors, Financial crises
    JEL: N0 N26 N16 F38
    Date: 2021
  24. By: Annie Portelance
    Abstract: A central bank’s ability to measure the impact of its communications is nothing less than challenging. This is for several reasons: (i) the general public is a vastly broad audience with varying degrees of knowledge of, interest in and engagement with economics and central banking; (ii) some communications goals—such as building trust—take a significant amount of time; (iii) results from communications efforts are often intangible and difficult to measure; and (iv) many communications outcomes are influenced by broader social factors that are beyond a central bank’s control. The Bank of Canada’s Communications Department has developed a framework to quantify and qualify the Bank’s communications efforts and their results. Using data-based measurement and evaluation, the department can assess the impact of the Bank’s communications activities and gauge the department’s contribution to the Bank’s overall goals. These measurement and evaluation activities have contributed significantly to the Communications Department’s work, informing both strategic and tactical decisions. The use of measurement and evaluation brings a fresh perspective and enriches the practice of strategic communications—in a sense, integrating science into an established art. The Bank’s framework provides a solid foundation upon which measurement and evaluation approaches can stand securely as they evolve.
    Keywords: Central bank research; Credibility; Monetary policy communications
    JEL: D8 D83
    Date: 2021–06
  25. By: Cahen-Fourot, Louison
    Abstract: In the perspective of a social-ecological transformation, this article sets the discussion on the future of central banking back in the context of ecological limits to growth. It first surveys the literature on proposals to introduce sustainability in central banking. It then draws from the conceptualization of money as a social relation to discuss central banks’ mandates, independence, governance and instruments. This article therefore adopts a normative stance. Central banks should be politically accountable with a renewed governance and committees composition. In line with the endogenous nature of money, their mandate needs not to include price stability and should focus on fostering full employment, social cohesion and relevant economic development within the ecological limits of the planet. Three policy instruments are then discussed to shift the nature of central banks’ operations responsive to prescriptive: differentiated target interest rates, credit control and qualitative tightening in assets purchasing programs.
    Keywords: monetary policy; central banking; sustainability; social-ecological transformation; post-growth; endogenous money
    Date: 2021–06–30
  26. By: Randal K. Quarles
    Date: 2021–06–28

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