Beyond Academia

Central Banks and Digital Currencies

In the current post-COVID-19 macroeconomic scenario, digital currencies may configure as an important tool to accompany monetary tightening and increases in interest rates.

In fact, the introduction of state backed-up digital currencies could be designed in a way to allow the neutralization of public debt without inflationary effects.

To learn more about this topic, navigate the following links:

18th Mai 2022. Guido Cozzi published an article on Hindu business online. The digital Rupee can help fix India's inflation while saving Covid-stricken public finances
G. Cozzi and L. Becchetti. "Is restrictive monetary policy doomed to ruin public finances? Not necessarily.", an article appeared on EURACTIV on 2022 June 27th.
G. Cozzi and L. Becchetti. "A central bank digital euro could save the eurozone – here’s how", an article appeared on The Conversation on 2022 May 17th.
30th April 2022. Guido Cozzi published an article on Avvenire (together with Leonardo Becchetti) about their proposal on the digital euro. They propose to design the introduction of the digital euro in a more restrictive way than the usual euros. This will allow the replacement of a large part of the Eurozone public debt without creating inflation.
21st April 2022. Guido Cozzi published an article on "il Sole 24 Ore" (the Italian FT), proposing to use the digital euro to reduce the Eurozone public debt without creating new money and inflation. But, of course, it all depends on the design of the CBDC, and he has found a way that could massively help governments.