|
on Payment Systems and Financial Technology |
|
Issue of 2023‒03‒20
27 papers chosen by |
| By: | Raphael Auer; Giulio Cornelli; Sebastian Doerr; Jon Frost; Leonardo Gambacorta; Raphael A. Auer |
| Abstract: | Prices for cryptocurrencies have undergone multiple boom-bust cycles, together with ongoing entry by retail investors. To investigate the drivers of crypto adoption, we assemble a novel database (made available with this paper) on retail use of crypto exchange apps at daily frequency for 95 countries over 2015–22. We show that a rising Bitcoin price is followed by the entry of new users. About 40% of these new users are men under 35, commonly identified as the most “risk-seeking” segment of the population. We confirm these findings by exploiting two exogenous price shocks: the crackdown of Chinese authorities on crypto mining in mid-2021 and the social unrest in Kazakhstan in early 2022. Moreover, we find that when prices rise retail investors buy, while the largest holders sell — making a return at the smaller users’ expense. Overall, back of the envelope calculations suggest that around three-quarters of users have lost money on their Bitcoin investments. |
| Keywords: | Bitcoin, cryptocurrencies, cryptoassets, regulation, decentralised finance, DeFi, retail investment |
| JEL: | E42 E51 E58 F31 G28 L50 O32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10266&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | The eNaira is the central bank digital currency of Nigeria. People who are interested in the eNaira and financial inclusion will seek information about eNaira and financial inclusion. Their interest in information about eNaira and financial inclusion will make it easier for them to adopt the eNaira and embrace other financial inclusion innovations such as financial technology (Fintech) and cryptocurrency. This paper investigates the determinants of interest in eNaira and financial inclusion information. Interest over time data were analyzed using descriptive statistics, correlation analysis and ordinary least squares (OLS) regression. The study also used the GMM and 2SLS regression methods for robustness. The findings of this study reveal that interest in Fintech and eNaira information are significant positive determinants of interest in financial inclusion information. Also, interest in financial inclusion is a significant positive determinant of interest in eNaira information. Furthermore, interest in Fintech information has a positive and significant correlation with interest in financial inclusion information. There is also a significant positive correlation between interest in central bank digital currency information and interest in Fintech information. The implication of the findings is that interest in information about new financial innovations, such as Fintech and eNaira, can stimulate interest in information about financial inclusion. |
| Keywords: | eNaira, Fintech, financial inclusion, central bank digital currency, cryptocurrency, information, innovation, innovation diffusion theory. |
| JEL: | E50 E51 E52 E58 E59 |
| Date: | 2023–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116405&r=pay |
| By: | Cyrus Minwalla; John Miedema; Sebastian Hernandez; Alexandra Sutton-Lalani |
| Abstract: | Offline functionality is a key consideration for a potential CBDC. We describe the different types of offline functionality based on their duration outside of network connection—either intermittent (for short periods) or extended (for longer periods). We discuss the advantages and drawbacks of each and consider implications for end-user devices, system resilience and universal accessibility. |
| Keywords: | Central bank research; Digital currencies and fintech |
| JEL: | E E42 E58 O O31 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:23-2&r=pay |
| By: | Marco Reuter |
| Abstract: | The popularity of blockchain technology and cryptocurrencies has grown in recent years, but there is still disagreement about their value in economic interactions. In this paper, I examine the value of a blockchain for an entrepreneur who creates a network. The entrepreneur can decide to retain control of the network with a centralized implementation through a regular company, or surrender control over the network with a decentralized implementation through the blockchain. The network’s users experience a locked-in effect. I show that a decentralized implementation of the network is both (i) preferred by the entrepreneur and (ii) a Pareto improvement, if and only if the size of the locked-in effect is sufficiently large. |
| Keywords: | Blockchain, Smart Contracts, Decentralization, Cryptocurrency, Commitment, Networks |
| JEL: | C70 D00 D2 D4 L2 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_394&r=pay |
| By: | Raphael Auer; Giulio Cornelli; Jon Frost; Raphael A. Auer |
| Abstract: | The Covid-19 pandemic has been a shock to retail payment behaviour. How have the changes differed across countries? What do they imply for the future of cash and digital payments? We assemble a new “Future of Payments” database on retail payment behaviour for up to 95 countries over September 2019 to June 2022. We compare this with measures of the severity of the Covid-19 pandemic, using variation in the timing of waves of cases, changes in mobility and lockdown measures across countries. We find that card-not-present payments, payment app downloads and the volume of cash in circulation all rose in weeks of more stringent lockdowns. Changes were less pronounced in countries with higher mobile penetration. However, recent data suggest that some effects reversed once lockdowns were eased, and mobility rebounded. |
| Keywords: | retail payments, cash, Covid-19 pandemic, digital innovation |
| JEL: | E42 I18 O32 O33 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10258&r=pay |
| By: | Arthur A. B. Pessa; Matjaz Perc; Haroldo V. Ribeiro |
| Abstract: | Cryptocurrencies are considered the latest innovation in finance with considerable impact across social, technological, and economic dimensions. This new class of financial assets has also motivated a myriad of scientific investigations focused on understanding their statistical properties, such as the distribution of price returns. However, research so far has only considered Bitcoin or at most a few cryptocurrencies, whilst ignoring that price returns might depend on cryptocurrency age or be influenced by market capitalization. Here, we therefore present a comprehensive investigation of large price variations for more than seven thousand digital currencies and explore whether price returns change with the coming-of-age and growth of the cryptocurrency market. We find that tail distributions of price returns follow power-law functions over the entire history of the considered cryptocurrency portfolio, with typical exponents implying the absence of characteristic scales for price variations in about half of them. Moreover, these tail distributions are asymmetric as positive returns more often display smaller exponents, indicating that large positive price variations are more likely than negative ones. Our results further reveal that changes in the tail exponents are very often simultaneously related to cryptocurrency age and market capitalization or only to age, with only a minority of cryptoassets being affected just by market capitalization or neither of the two quantities. Lastly, we find that the trends in power-law exponents usually point to mixed directions, and that large price variations are likely to become less frequent only in about 28\% of the cryptocurrencies as they age and grow in market capitalization. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.12319&r=pay |
| By: | Ahnert, Toni; Hoffmann, Peter; Leonello, Agnese; Porcellacchia, Davide |
| Abstract: | What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying a model of financial intermediation with an endogenously determined probability of a bank run, using global games. As an alternative to bank deposits, consumers can also store their wealth in remunerated CBDC issued by the central bank. Consistent with widespread concerns among policymakers, higher CBDC remuneration increases the withdrawal incentives of consumers, and thus bank fragility. However, the bank optimally responds to the additional competition by offering better deposit rates to retain funding, which reduces fragility. Thus, the overall relationship between CBDC remuneration and bank fragility is U-shaped. JEL Classification: D82, G01, G21 |
| Keywords: | bank fragility, central bank digital currency, demand deposits, global games |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232783&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | This paper investigates the role of central bank digital currency (CBDC) in bank earnings management, and focus on how CBDC activity might influence banks to engage in accrual earnings management using loan loss provisions (LLPs) and the implications for earnings quality. I show that banks will use accruals, such as loan loss provisions, to manage earnings when CBDC-induced bank disintermediation leads to a reduction in bank deposits, a reduction in bank lending and a likely reduction in reported earnings. Bank managers will mitigate the reduction in reported earnings by lowering discretionary LLPs to increase reported earnings. |
| Keywords: | banks, earnings management; central bank digital currency, loan loss provisions, CBDC, disintermediation, accruals, income smoothing, migration, earnings quality, income smoothing. |
| JEL: | E50 E51 E52 E58 E59 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116412&r=pay |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa); Mushfiqur Rahman (University of Wales, UK) |
| Abstract: | The study assesses linkages between information technology, inequality and adult literacy in 57 developing countries for the period 2012-2016. Income inequality is measured with the Gini coefficient while six dynamics of information technology are taken on board, namely: use of virtual social network, internet access in schools, internet penetration, mobile phone penetration, fixed broadband subscription and number of personal computer users. The findings show that only internet access in schools unconditionally promote adult literacy. The corresponding inequality threshold that should not be exceeded in order for internet access in schools to continue promoting adult literacy is 0.739 of the Gini coefficient. Policy implications are discussed. |
| Keywords: | information technology, inequality; adult literacy |
| JEL: | D10 D14 D31 D60 O30 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/012&r=pay |
| By: | Mr. Marco Gross; Elisa Letizia |
| Abstract: | We set up a model of banks, the central bank, the payment system, and the surrounding private sector economic environment. It is a structural, choice-theoretic model which is deeply rooted in data. We use the model to conduct a structural counterfactual that introduces a Central Bank Digital Currency (CBDC) which is optionally interest-bearing. The model can be used to provide estimates of the emerging CBDC-in-total-money shares, the drop of deposit rate spreads to policy rates, the impact on reserve needs, the implied rotation of profits away from banks toward central banks, and the extent to which monetary policy pass-through may become stronger. We obtain upper bound estimates for the CBDC-in-money shares of about 25 percent and 20 percent, respectively for the U.S. and euro area, when CBDC would be remunerated at the policy rates and be perceived as “deposit-like” by the public. Actual take-up may likely be below such upper bound estimates. The model codes—to replicate all results and to apply them to other countries—are made available along with the paper. |
| Keywords: | Central bank digital currency; bank funding costs; central bank seigniorage; monetary policy pass-through; reinforcement learning; Authorss e-mail; bank agent; Central Bank digital currencies; Deposit rates; Central bank policy rate; Monetary base; Bank deposits; Global |
| Date: | 2023–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/009&r=pay |
| By: | Jaroslaw Morawski; Anetta Proskurovska |
| Abstract: | The introduction of blockchain-based solutions to the real estate transaction process has received significant attention in the recent years. However, there is still little clarity as to what the impact of such step might be on the dynamics of the real estate market. We build an agent-based model calibrated on the Swedish market and use it in a simulation analysis to study how redesigning of the house sale process with blockchain can affect housing price dynamics. First, the model looks at the traditional transaction setup using the sequence of interactions between parties as is typical in Sweden today. In the second step, we simulate a streamlined transactional workflow orchestrated by a hypothetical blockchain smart contract and compare its outcome with that of the traditional process. Our main goal is to investigate whether streamlining housing transactions via permissioned blockchain application exacerbates market volatility and generates flash crashes. At this point, the analysis is still ongoing and the results are outstanding. |
| Keywords: | blockchain; housing market; Simulation |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_187&r=pay |
| By: | Preminger, Ambrose |
| Abstract: | M-Governance has been viewed as a tool that would facilitate the process of empowering citizens, which is something that has been under discussion for decades in democratic countries that belong to the globalized world. It is viewed as a tool that will help facilitate such a process in a way that will be beneficial to the citizens themselves. It is deeply ingrained in the idea of democracy that citizens should be able to access government services online at any time of the day. This is because they should be empowered as a result of being able to do so. There are several pertinent issues that need to be addressed in this process, including the privacy of citizen data, the sharing of that data across countries, as well as the equal access to electronic services throughout the world, in order to make this process successful. In this study, we explore using a critical discourse analysis the perception of mobile governance as a catalyst for empowering citizens in the global advancement towards electronic democracy on the basis of a critical discourse analysis of mobile governance as a catalyst for empowering citizens in the global advancement towards electronic democracy. What role does mobile governance play in facilitating democracy in developing countries, where there are not enough resources to make it possible for every citizen to access mobile governance. |
| Keywords: | Society and technology, mobile apps, governance, m-government, e-government, mobile apps and governance, m-governance |
| JEL: | O32 O33 Q55 |
| Date: | 2022–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116357&r=pay |
| By: | Patrick Lecomte |
| Abstract: | The implementation of smart technologies in the built environment poses many new issues to the real estate sector. Among these issues is behavioural control of building occupants thanks to increasingly sophisticated smart real estate’s technological apparatus. Behavioural control in digital space (e.g., the internet) has generated passionate arguments about human dignity. Stances founded on technology or ethics foster a Manichean perspective, either by focusing on technological innovation and ignoring the negative consequences of embedding smart technology in human lives for the former, or by condemning the very use of digital technology altogether in the name of human freedom for the latter. By doing so, they tend to obscure our ability to rationally assess the impact of technology on space users in smart buildings. This paper applies an economic approach to determine the nature of control in smart real estate and proposes the blueprint for a code of digital governance in the real estate sector. Based on Lecomte (2019, 2020, 2021), it concludes by ascertaining the need for regulators to step in, for instance through tougher ad hoc privacy laws designed for the built environment. |
| Keywords: | Big data; Control; Digital Technology; smart building |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_219&r=pay |
| By: | Popoola, Osuolale Peter; Adeboye, Olawale Nureni |
| Abstract: | Fourth Industrial Revolution is describes as exponential growth of several key technological fields’ concepts, such as intelligent materials, cloud computing, cyber-physical systems, data exchange, the Internet of things and blockchain technology. At its core, data represents a post-industrial opportunity. The effects of technologies have provided new avenues of data for official statistics, which can then be harnessed through the power of data science. However, as data continue to grow in size and complexity; new algorithms need to be developed so as to learn from diverse data sources. The limitation of conventional statistics in managing and analyzing big data has inspired data analysts to venture into data science. Data Science is a combination of multiple disciplines that use statistics, data analysis, and machine learning to analyze data, and extract knowledge and insights from it. These swathes of new digital data are valuable for official statistics. This paper links industrial eras to the evolution of statistics and data; it examines the emergence of big data and data science, what it means, it benefits and challenges for official statistics |
| Keywords: | Industrial Eras, Data Evolution, Big Data Revolution, Data Science, Official Statistics |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:268717&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | Financial inclusion involves the provision of basic formal financial services to members of society. Policy efforts and collaboration with the private sector have helped to increase the level of financial inclusion in many countries. Such efforts give rise to net winners and net losers from financial inclusion efforts. This paper identifies the net losers from financial inclusion efforts. The lesson we learn from the net losers identified in this study is that being ‘banked’ is only a necessary condition to enjoy the benefits of financial inclusion. Being ‘banked’ is not a sufficient condition to enjoy the benefits of financial inclusion. We learn that a banked adult can be a net loser from financial inclusion despite being banked. This has wider implications for understanding the challenges to sustained financial inclusion. |
| Keywords: | financial inclusion, banked adults, losers, access to finance. |
| JEL: | G21 I31 I38 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116406&r=pay |
| By: | Shah, Shahid Manzoor; Ali, Amjad |
| Abstract: | Recently, policymakers and researchers have shifted their attention toward financial inclusion to control poverty, the black economy, tax collection, and financial development. Empirical and Theoretical literature shows that financial inclusion has become a fundamental requirement for economic development. This study provides a detailed literature review covering recent development in financial inclusion among different nations as well as in different reigns. This study highlights the major factors which influence financial inclusion i.e., financial literacy, financial innovations, financial regulation, financial stability, income, information communication technology, gender differences, cost of financial services, economic conditions, and political situations. These indicators are different across countries which becomes the major reason for variations in financial inclusion among countries. This study also highlights some demand-side and supply-side factors of financial inclusion. This study suggests that availability, accessibility, and usage are the major dimensions of financial inclusion which are measured by saving, lending, no of ATMs, no of bank branches, and no. of bank accounts. The study also has several dimensions of financial inclusion for future research. |
| Keywords: | financial inclusion, financial technology, financial stability, financial institutions |
| JEL: | G10 G20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116327&r=pay |
| By: | Ozili, Peterson K |
| Abstract: | The objective of this article is to define the financial inclusion expectation gap, offer some insight into the nature and the causes of it, and suggest ways to reduce the gap. The discussion in the article provides helpful insights into this problem towards achieving the United Nations Sustainable Development Goals. It is hoped that such an attempt can provide insights to understand the expectation gap in financial inclusion. |
| Keywords: | Access to finance, banked adults, development, expectation gap, financial inclusion, financial institutions, formal financial services, unbanked adults. |
| JEL: | G20 G21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116414&r=pay |
| By: | Ozili, Peterson K; Lay, Sok Heng; Syed, Aamir |
| Abstract: | Empirical research on the relationship between financial inclusion and economic growth has neglected the influence of religion or secularism. We investigate the effect of financial inclusion on economic growth in religious and secular countries. The financial inclusion indicators are the number of ATMs per 100, 000 adults and the number of bank branches per 100, 000 adults. The findings reveal that bank branch contraction significantly increases economic growth in secular countries. Bank branch expansion combined with greater internet usage increases economic growth in secular countries while high ATM supply combined with greater internet usage decreases economic growth in secular countries. We also find that bank branch expansion, in the midst of a widening poverty gap, significantly increases economic growth in religious countries, implying that financial inclusion through bank branch expansion is effective in promoting economic growth in poor religious countries. It was also found that internet usage is a strong determinant of economic growth in secular countries. |
| Keywords: | financial inclusion, economic growth, ATMs per 100, 000 adults, bank branches per 100, 000 adults, poverty, internet usage, access of finance, religion, religious countries, secular countries. |
| JEL: | E32 E51 G21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116413&r=pay |
| By: | Zweigle, Tanja; Heinl, Jacqueline |
| Keywords: | Digital Selling, B2B-Vertrieb, Digital Sales Strategy, Dual-Process-Theory |
| JEL: | M31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iubhma:1februar2023&r=pay |
| By: | Perry Mehrling (Boston University) |
| Abstract: | The global dollar system, though repeatedly reported to be on its last legs-most recently in the Global Financial Crisis of 2008, but most famously in the Nixon devaluation of 1971-has repeatedly instead consolidated and gone on to further geographical expansion (McCauley 2021). The key currency approach to international monetary economics, first put forward by John H. Williams in the aftermath of the 1931 devaluation of sterling, suggests that such resilience arises from the actions of market practitioners who appreciate the convenience of a global means of payment. So the question arises, why has the key currency approach remained a minority view, if not among practicing bankers then certainly among practicing academics? This paper proposes two main reasons—the discredit of monetary optimism during the depression, and the subsequent fateful adoption of Walrasian equilibrium as the frame for academic discussion after WWII. |
| Keywords: | key currency approach, Hahn Problem, sterling system, dollar system, exorbitant privilege. |
| JEL: | B2 F3 N1 |
| Date: | 2023–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp198&r=pay |
| By: | Paloma Taltavull de La Paz; Raúl Pérez; Francisco Juarez; Zhenyu Su |
| Abstract: | The paper builds the cycles of transactions and prices in the short term rental market from 2015 to 2021 for 46 European and Asian cities to understand how short-term tenants move across the cities. Having the cycles at the city level, the paper builds a panel and estimates a supply-demand model for the short-term rental market and analyses the endogenous relationship and ripple effect among cities using the VECM framework. Results suggest the existence of links between cities, both in short-term rental contracts and prices, supporting the hypothesis that short-term rental market visitors choose cities clustered in networks and that those networks compete with each other as alternative destinations. The evidence suggests that, through the technological platforms and individually, a particular city network is chosen as an alternative to others, revealing tastes changes and inducing segmentation in rental price growth and investment. |
| Keywords: | Cities; population mobility; rental prices, ; short term rental market |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_134&r=pay |
| By: | Atsuko Suzuki (Graduate School of Economics, Osaka University) |
| Abstract: | The title of this study, "Edo Koban 60-me" means the following: in "Edo, " one ryo (a unit of gold currency) of "Koban" (a middle-sized oval gold coin) was equal to "60-me" (me: the abbreviation of a unit of silver currency, momme, in round numbers) as the fixed exchange rate. This is a phenomenon seen only in the Edo commodity market, and the fixed exchange rate was used only when Edo citizens bought silver-denominated commodities from Kamigata (Osaka and Kyoto area) in gold coins. Osaka and Edo were the two major markets in early modern Japan. Osaka was the center of commerce, and exported large volumes of goods mainly to Edo. Edo was the political center and the largest consumer of goods from the Kamigata region. The early modern monetary system was a bimetallism of gold and silver coins, with copper coins used as small denominations. In Osaka, the pricing of goods and settlement of accounts was conducted in silver denomination. Contrarily, in Edo, transactions were handled in gold and copper coins. Gold and silver had fluctuating market prices. The shogunate set the rate at 60 momme per one ryo in 1700, but the Edo commodity market was the only one that adhered to this rate. The Kamigata market and the Edo financial market continued with the existing fluctuating prices. A unique phenomenon occurred. Kamigata merchants manipulated silver prices before shipping goods to Edo. In the mid-Edo period, silver usually had a high price, and the Edo selling price had already caused a price spike in Osaka before exporting. Thus, "Edo Koban 60-me" was a sociocultural phenomenon that could not have been created unless all the following conditions were met: a fixed exchange rate in the Edo commodity market, floating market prices in the Kamigata market, transactions in gold denomination in Edo, settlements in silver denomination in Kamigata, goods shipped to Edo being denominated in silver, and the pricing method in futures of Kamigata merchants. These historical commercial facts are readily apparent in the documents of merchant families in the early modern period, and are also discussed in early modern books. Even ukiyoe woodblock prints depict "Koban 60-me" in scenes of buying and selling inside Edo stores. However, this has not become common academic knowledge in modern Japan, and is hardly known to the general public even though the Japanese love their own history. For instance, in the academic world, the current understanding is that, despite the shogunate's effort to fix an exchange rate between gold and silver, in effect, they floated against each other in all markets. The specific circumstances of the Edo market are not recognized. Thus, the understanding of East-West trade also assumes only a unitary floating exchange rate; that when silver was high, the purchasing power of gold would decline, leading to a decrease in Edo's imports, which would, in turn, increase demand for the Edo market and lead to higher prices. This does not recognize that prices had been raised prior to exportation. The purpose of this study is to incorporate the "Edo Koban 60-me" phenomenon into the common knowledge of early modern Japanese history. |
| Keywords: | history of money, commodity money, early modern Japan, fixed and floating exchange rates, Edo and Osaka. |
| JEL: | D46 E31 K42 N15 Z13 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:2204r&r=pay |
| By: | Samuel Demeulemeester (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The 2007-2008 global financial crisis has brought strong renewed interest in the "100% money" reform proposal, inherited from the 1930s, which aims at divorcing money creation from bank lending by imposing 100% reserves on current account deposits. This reform idea, however, is frequently subject to confusion, being sometimes likened to the idea of abolishing bank intermediation, sometimes to that of setting up a currency board, or yet mistaken for the more recent "narrow banking" proposal. For this reason, this article offers to clarify its concept and objectives, by revisiting the works of the authors of this proposal in the 1930s—Henry Simons, Lauchlin Currie and Irving Fisher in particular. After briefly recalling the history of the "100% money" idea, we present its main arguments, and then discuss its implications for the payment system, bank intermediation, and the institutional framework of money issuance. We conclude on the importance of a conceptual clarification of this reform idea in respect of the ongoing discussions about it. |
| Abstract: | La crise financière mondiale de 2007-2008 a conduit à un renouvellement d'intérêt marqué pour la proposition de réforme « 100% monnaie », héritée des années 1930, qui vise à dissocier la création monétaire des prêts bancaires en imposant 100% de réserves sur les dépôts en compte courant. Cette idée de réforme est cependant régulièrement sujette à confusion, étant tantôt assimilée à l'idée d'abolir l'intermédiation bancaire, tantôt à celle d'instaurer un currency board, lorsqu'elle n'est pas confondue avec la proposition plus récente du narrow banking. Pour cette raison, cet article entreprend d'en clarifier le concept et les objectifs, en revisitant les travaux des auteurs de cette proposition dans les années 1930 – Henry Simons, Lauchlin Currie et Irving Fisher notamment. Après un bref rappel historique de l'idée de « 100% monnaie », nous en présentons les principaux arguments, puis discutons de ses implications pour le système de paiement, l'intermédiation bancaire, et le cadre institutionnel de l'émission monétaire. Nous concluons sur l'importance d'une clarification conceptuelle de cette idée de réforme au regard des débats dont elle continue de faire l'objet. |
| Keywords: | 100% money, money creation, Irving Fisher, Chicago Plan, narrow banking, 100% monnaie, Plan de Chicago, création monétaire |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03938669&r=pay |
| By: | Antonio Coppola; Arvind Krishnamurthy; Chenzi Xu |
| Abstract: | We provide a liquidity-based theory for the dominant use of the US dollar as the unit of denomination in global debt contracts. Firms need to trade their revenue streams for the assets required to extinguish their debt obligations. When asset markets are illiquid, as modeled via endogenous search frictions, firms optimally choose to denominate their debt in the unit of the asset that is easiest to obtain. This gives central importance to the denomination of government-backed assets with the largest safe, liquid, short-term float and to financial market institutions that facilitate safe asset creation. Equilibria with a single dominant currency emerge from a positive feedback cycle whereby issuing in the more liquid denomination endogenously raises its liquidity, incentivizing more issuance. We rationalize features of the current dollar-dominant international financial architecture and relate our theory to historical experiences, such as the prominence of the Dutch florin and pound sterling, the transition to the dollar, and the ongoing debate about the potential rise of the Chinese renminbi. |
| JEL: | E40 F33 G15 N20 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30984&r=pay |
| By: | Jonathan V. Hall; John J. Horton; Daniel T. Knoepfle |
| Abstract: | Following Uber-initiated fare increases, drivers make more money per trip and, initially, more per hour-worked. Drivers begin to work more hours. However, this increase in hours-worked—combined with a reduction in demand from a higher fare—has a business stealing effect, with drivers spending a smaller fraction of working hours transporting passengers. This market adjustment brings the hourly earnings rate back to about the rate that prevailed before the fare increase, in roughly two months. Passengers are partially compensated for higher prices by shorter wait times, but during the period covered by our data, fare increases likely reduced passenger welfare. |
| JEL: | J01 R4 R41 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30883&r=pay |
| By: | Wing Sin Lau |
| Abstract: | The paper explores the relationship between ESG factors and the rental income and property value with a zoom in the study of cloud based smart locker operators. The key sustainability attributes researched in the paper cover tenant’s expectations and property value in relationship to ESG factors. Given the increasing popularity of cloud based smart locker operator in partnership with building owner and manager to provide alternatives to last mile logistic delivery to minimize cost and carbon emissions. E-commerce is significantly growing with no sign of slowing down hence cloud-based technology smart locker offered 24/7 contactless pick up and real time parcel status update with the benefit to reduce carbon emissions materially per parcel unit. Sensitivity of rental income and property value to the captioned sustainability factors associated to the Sustainability Development Goals (SDGs) highlighted by high transparent real estate markets in Hong Kong is being studied. The author aims to provide insights in how smart locker operators managed to develop last mile delivery solution for e commerce logistics supported by technology and create win-win with property owner as real estate investors and lenders putting more emphasis of ESG factors in financing decisions. |
| Keywords: | ESG Factors; Property Value; Rental Income; Smart locker operators |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_36&r=pay |
| By: | Sebastian Alvarez (Universidad Adolfo Ibañez, Santiago, Chile); Gianandrea Nodari (Université de Genève, Geneva, Switzerland) |
| Abstract: | This article explores the evolution of the Argentine banking system between 1925 and 1935. In order to reach this goal, we gathered individual banks' monthly balance sheets and offer a novel and comprehensive database on the Argentine banking system of the time. Using this new source, our analysis displays that the situation of Argentine banks during the Great Depression was more complex and dramatic than has been generally recognized. Although intense and deep, the banking crisis was not, however, homogeneous. The nature and timing of the problems, as well as their causes and scope, varied significantly between individual banks or groups of banks. As the article shows, the reasons and motives behind the heterogeneity of banks' problems seem to be linked both to national political episodes of instability as well as to the contagion of the financial crisis from the core countries. |
| Keywords: | Argentina, Great Depression, Banking crisis, International Finance |
| JEL: | G01 G21 N16 N26 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ahe:dtaehe:2303&r=pay |