We show that the estimated effect of digital euro news on bank stock valuations and lending depends on the bank’s deposit reliance and the central bank digital currency (CBDC) design features. Using a quantitative DSGE model calibrated to the euro area economy that replicates such evidence, we find that CBDC issuance yields nontrivial welfare trade-offs between, on one side, the positive expansion of liquidity services and the improved stabilization of deposit funding and lending and, on the other side, a negative bank disintermediation effect. The optimal amount of CBDC lies between 15 and 45 percent of quarterly GDP. (JEL E23, E42, E58, F33, G14, G21)

Lorenzo Burlon

Manuel A. Muñoz

Frank Smets

American Economic Journal Macroeconomics

American Economic Journal: Macroeconomics focuses on studies of aggregate fluctuations and growth, and the role of policy in that context. Such studies often borrow from and interact with research in other fields, such as monetary theory, industrial organization, finance, labor economics, political economy, public finance, international economics, and development economics. To the extent that they make a contribution to macroeconomics, papers in these fields are also welcome.

The American Economic Journal: Macroeconomics focuses on the study of aggregate fluctuations and growth, as well as the role of policy within that context. Such studies often draw from and interact with research in other fields, including monetary theory, industrial organization, finance, labor economics, political economy, public finance, international economics, and development economics. Papers from these fields are also welcome, provided they contribute to the field of macroeconomics.

《American Economic Journal: Macroeconomics》专注于研究总体波动与增长以及政策在其中的作用。这类研究通常借鉴并与其他领域的研究相互交融，如货币理论、产业组织、金融、劳动经济学、政治经济学、公共财政、国际经济学和发展经济学。只要对宏观经济学有所贡献，这些领域的论文也受到欢迎。

Category	Quartile
经济学	1
经济学, 经济学	1

The Optimal Quantity of CBDC in a Bank-Based Economy

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