E42

David Rivero · Hugo Rodríguez Mendizábal

This paper demonstrates that the canonical efficiency result of Diamond and Dybvig (1983) — that banks using maturity transformation can decentralize the first-best risk-sharing allocation — breaks …

Francesco Lippi · Elia Moracci

Lippi and Moracci (2026) ask how euro area households choose between cash and card payments, and whether existing theoretical models can explain observed behavior. They draw on ECB payment diary …

Hanfeng Chen · Maria Elena Filippin

The paper analyzes the implications of introducing a retail central bank digital currency (CBDC) that competes with commercial bank deposits for household liquidity, in a model where banks must post …

Gu Jin · Tao Zhu

This paper applies a multiple-denomination commodity money model — building on Lee, Wallace, and Zhu (2005) — to coinage episodes in late medieval England, and derives two main findings. Shortages of …

François R. Velde · Marcelo Veracierto

Written on the eve of Argentina's 2001-02 currency-board collapse, this Chicago Fed policy piece examines Argentina's 1991-99 dollar peg as a test case for the costs and benefits of full …

François R. Velde

In 1716-1720, John Law restructured French public finance by converting most of the government's debt into equity in a trading-and-tax-farming conglomerate and replacing silver coin with paper money; …

Rodney J. Garratt · Zhentong Lu · Phoebe Tian

This paper uses detailed transaction-level data from Canada's new high-value payment system (HVPS) to show how participants save liquidity by strategically exploiting the gridlock resolution …

Michael Woodford

Against fears that electronic money will erode central banks' monopoly over a monetary base and so undermine their power to control inflation, Woodford argues that monetary policy works through …

John H. Cochrane

Cochrane argues that the fiscal theory of the price level rests on a valuation equation, not a budget constraint -- nominal government debt is priced like a claim on future government surpluses, …

Michael Woodford

Woodford shows that the price level remains determinate even under two forms of radical money-supply endogeneity long thought to destroy monetary control -- a central-bank interest-rate peg and …

Maurizio Michael Habib · Fabrizio Venditti

Decomposing a global risk factor built from stock returns in 63 economies into structural shocks, this paper finds that exogenous shifts in the financial sector's risk-bearing capacity matter more …