How Long to Read Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model

How Long Does it Take to Read Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model?

It takes the average reader and 50 minutes to read Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model by Huifeng Chang

Assuming a reading speed of 250 words per minute. Learn more

Description

Would the introduction of a Central Bank Digital Currency (CBDC) lead to lower deposits (disintermediation) and lending in the banking sector? This paper develops a model where households heterogeneous in wealth allocate between an illiquid asset and assets that can be used for payments: bank deposits, cash, and CBDC. CBDC is more efficient as a means of payment and has lower access cost than deposits. Deposits are offered by an imperfectly competitive banking sector which raises deposit interest rates after CBDC introduction to prevent substitution away from deposits to CBDC. We find that there are two opposing margins of impact on the level of aggregate deposits: (1) the intensive margin gain in deposits by richer households increasing their holdings of deposits because of higher interest rates, and (2) the extensive margin loss of deposits among poorer households who switch from deposits to the CBDC. The extensive margin loss in deposits is more likely to dominate (yielding a fall in aggregate deposits) when the mass of poorer households is large and when it is relatively costly to access bank accounts. This tends to be the case in developing and emerging market economies. However, even when the extensive margin loss of deposits dominates and there is disintermediation, the impact on lending is quantitatively small if banks have access to other forms of funding, such as wholesale or central bank financing.

How long is Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model?

Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model by Huifeng Chang is 50 pages long, and a total of 12,500 words.

This makes it 17% the length of the average book. It also has 15% more words than the average book.

How Long Does it Take to Read Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model Aloud?

The average oral reading speed is 183 words per minute. This means it takes 1 hour and 8 minutes to read Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model aloud.

What Reading Level is Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model?

Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model?

Central Bank Digital Currency and Bank Disintermediation in a Portfolio Choice Model by Huifeng Chang is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

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