Fiche du document
16 avril 2021
- 2104.07888
Mots-clés
Economics - General Economics Computer Science - Cryptography and Security Mathematics - Numerical Analysis Quantitative Finance - Computational Finance Statistics - ComputationSujets proches
Monetary managementCiter ce document
Luyao Zhang et al., « Optimal Algorithmic Monetary Policy », arXiv - économie
Partage / Export
Résumé
Centralized monetary policy, leading to persistent inflation, is often inconsistent, untrustworthy, and unpredictable. Algorithmic stablecoins enabled by blockchain technology are promising in solving this problem. Algorithmic stablecoins utilize a monetary policy that is entirely rule-based. However, there is little understanding of how to optimize the rule. We propose a model that trade-off the price for supply stability. We further study the comparative statics by varying several design features. Finally, we discuss the empirical implications for designing stablecoins by the private sector and Central Bank Digital Currency (CBDC) by the public sector.