Central Bank Equity as an Instrument of Monetary Policy

@article{Hampl2019CentralBE,
  title={Central Bank Equity as an Instrument of Monetary Policy},
  author={Mojm{\'i}r Hampl and Tom{\'a}{\vs} Havr{\'a}nek},
  journal={Comparative Economic Studies},
  year={2019},
  volume={62},
  pages={49-68}
}
We examine the use of central bank equity as an unconventional monetary policy tool. In this setting, a central bank employs digital currency to transfer digital cash to each household, thus supporting consumption directly when needed. The asset side of the central bank’s balance sheet remains unchanged, and the creation of new digital cash is offset by a decrease in central bank equity. The central bank thus incurs an immediate loss but does not take on any additional risks for its future… 

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