Financial Innovation and Monetary Policy

Abstract: A 5 page paper discussing implications for policy makers. Paper and financial products are relatively easy to control and carry little implication for monetary policy as they are being used today. Digital money offers wider challenges, but also significant cost savings for both central and retail banks without greatly affecting M1 money supply. Policy makers need to consider that any nation seeking to inhibit digital money products will inherit a distinct competitive disadvantage, a position that no nation can afford to pursue in the expanding global market. Bibliography lists 6 sources.

Filename: KSfinanInn.wps

Pages: 5

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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