Central bank research

• Digital Payments in Firm Networks: Theory of Adoption and Quantum Algorithm

  Staff Working Paper 2024-17 Sofia Priazhkina, Samuel Palmer, Pablo Martín-Ramiro, Román Orús, Samuel Mugel, Vladimir Skavysh

  We build a network formation game of firms with trade flows to study the adoption and usage of a new digital currency as an alternative to correspondent banking.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Digital currencies and fintech, Digitalization, Economic models, Financial institutions, Payment clearing and settlement systems, Sectoral balance sheet JEL Code(s): C, C6, C7, C71, D, D4, D8, D85, G, L, L2, L22

• The Macroeconomic Implications of Coholding

  Staff Working Paper 2024-16 Michael Boutros, Andrej Mijakovic

  Coholder households simultaneously carry high-cost credit card debt and low-yield cash. We study the implications of this behavior for fiscal and monetary policy, finding that coholder households have smaller consumption responses in the short run but larger responses in the long run.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Economic models, Fiscal policy, Monetary policy JEL Code(s): E, E2, E21, E4, E44, E6, E62, G, G5, G51