LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory A central bank introduces a retail CBDC to improve monetary transmission. How might this influence the inflation–unemployment dynamic in the short run?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory A central bank introduces a retail CBDC to improve monetary transmission. How might this influence the inflation–unemployment dynamic in the short run?

Answer

CBDC issuance increases liquidity permanently, lowering inflation and unemployment together

Answer

Stronger monetary transmission allows faster control of inflation without a large rise in unemployment.

Answer

CBDC circulation eliminates the Phillips Curve trade-off.

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LG 1. Knowledge Comprehension LO 1.1. Generate knowledge of core concept and...

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