We study how introducing a central bank digital currency affects equilibrium allocations and
welfare in an environment where both currency and bank deposits are used in exchange …

This paper analyzes the link between monetary policy and capital misallocation in a New
Keynesian model with heterogeneous firms and financial frictions. In the model, firms with a …

This paper studies, analytically and numerically, economies with multiple liquid assets: fiat
currency; fixed-supply real assets; and reproducible capital. Cases are considered where …