{"id":33741,"date":"2020-12-21T17:50:53","date_gmt":"2020-12-21T15:50:53","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=33741"},"modified":"2025-08-28T15:23:22","modified_gmt":"2025-08-28T12:23:22","slug":"goldman-sachs-cbdc-could-boost-the-efficiency-of-fiscal-and-monetary-policy","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/goldman-sachs-cbdc-could-boost-the-efficiency-of-fiscal-and-monetary-policy\/","title":{"rendered":"Goldman Sachs: CBDC could boost the efficiency of fiscal and monetary policy"},"content":{"rendered":"<p>Analysts at Goldman Sachs, the investment bank, saw only modest advantages for fiscal and monetary policy after the possible launch of a lighter version of the Fed&#8217;s CBDC. But their effectiveness would rise by an order of magnitude after adding additional functionality to the digital dollar.<!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Goldman Sachs on CBDCS: \u00abAn initial simple CBDC would offer only modest advantages for fiscal and monetary policy, but a more radical CBDC could make policy more powerful someday.\u00bb<\/p>\n<p>\u00abOn the fiscal policy side, a simple CBDC could facilitate instant delivery of stimulus payments\u00bb <a href=\"https:\/\/t.co\/ht9ydMrnD7\">pic.twitter.com\/ht9ydMrnD7<\/a><\/p>\n<p>\u2014 Frank Chaparro (@fintechfrank) <a href=\"https:\/\/twitter.com\/fintechfrank\/status\/1340999283911364616?ref_src=twsrc%5Etfw\">December 21, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In a fragment of the study cited by The Block\u2019s news director Frank Chaparro, the initial version of a national digital currency (CBDC) may prove conservative in order to minimise potential damage to the financial system. However, it could unlock the possibility of instantly distributing stimulus payments to the population.<\/p>\n<p>Moreover, according to Federal Reserve officials Esther George and Loretta Mester, the same outcome can be achieved without launching a CBDC, thanks to the Fed&#8217;s own payments and settlement network, FedNow Service.<\/p>\n<p>Looking ahead, experts foresee a more sophisticated CBDC variant. It would include the ability to pay interest, which would improve the functioning of the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Monetary_transmission_mechanism\" target=\"_blank\" rel=\"noopener noreferrer\">monetary transmission mechanism<\/a>. In the context of monetary policy, the Fed could adjust rates in real time or seamlessly push them into negative territory, the researchers conceded.<\/p>\n<p>Launch of a CBDC could also be beneficial for the U.S. Treasury. Goldman Sachs argues that the department could automatically adjust tax rates by both timing and geography in response to macroeconomic data, including transactions involving the central bank&#8217;s digital currency.<\/p>\n<p>Earlier, Fed Chair Jerome Powell <a href=\"https:\/\/u1f987.com\/en\/news\/fed-chair-for-the-united-states-getting-the-digital-currency-right-matters-more-than-being-first\">emphasized<\/a> that for the United States it&#8217;s important not to get ahead of others in releasing a digital currency, but to do it right. He said the Fed has not yet decided to issue a digital currency \u2014 it is actively conducting research, both independently and in partnership with other central banks and the Bank for International Settlements.<\/p>\n<p>Earlier, ForkLog published a piece devoted to the digital yuan. Later, a <a href=\"https:\/\/u1f987.com\/en\/news\/how-chinas-digital-yuan-dcep-put-it-at-the-forefront-of-monetary-innovation\">review<\/a> on the achievements of Chinese authorities on this path was released.<\/p>\n<p>Subscribe to ForkLog&#8217;s channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts at Goldman Sachs saw only modest benefits for fiscal and monetary policy following the possible launch of the Fed&#8217;s &#8216;lite&#8217; version of the CBDC. But their effectiveness would rise by an order of magnitude after adding additional functionality to the digital dollar.<\/p>\n","protected":false},"author":1,"featured_media":33742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1095,1249,728],"class_list":["post-33741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cbdc","tag-federal-reserve-system","tag-goldman-sachs"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/33741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=33741"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/33741\/revisions"}],"predecessor-version":[{"id":33743,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/33741\/revisions\/33743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/33742"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=33741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=33741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=33741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}