I have stated several times that I think zero interest rates are qualitatively different from non-zero interest rates. With the introduction of very low interest rates, central banks have not just lowered interest rates by another couple of basis points but fundamentally changed the way banks and the economy overall work. One key driver for this fundamental change is that as I have noted
First off, enjoy your break. Second, when you are done recharging, can you share with me the latest and greatest study on central bank digital currencies (CBDC), their possible effect (disintermediation) on banks, and how their potential smart features would change the dynamics of money supply, inflation and everything about fiat currency (e.g. stimulate the masses to spend the digital euro on "whatever the government is looking to jumpstart" by a certain date or else the digital money expires and becomes worthless (or the UBI or whatever the trendy name of the fiat package is). There is of course a debate about decentralized versus centralized finance, but I am curious to know what the greater minds in finance and economics think about digitized currencies which seems to be the direction some central banks are studying, vis-a-vis Defi and crypto.
First off, enjoy your break. Second, when you are done recharging, can you share with me the latest and greatest study on central bank digital currencies (CBDC), their possible effect (disintermediation) on banks, and how their potential smart features would change the dynamics of money supply, inflation and everything about fiat currency (e.g. stimulate the masses to spend the digital euro on "whatever the government is looking to jumpstart" by a certain date or else the digital money expires and becomes worthless (or the UBI or whatever the trendy name of the fiat package is). There is of course a debate about decentralized versus centralized finance, but I am curious to know what the greater minds in finance and economics think about digitized currencies which seems to be the direction some central banks are studying, vis-a-vis Defi and crypto.