The model of a shared interest rate for a group of countries to circulate a digital currency: Featuring the BRICS

The purpose of the research is to offer a comparative analysis of a libertarian and gradual approach to introducing a market interest rate. The topic is time-relevant since the economies of the emerging markets today face difficult challenges posed by economic, financial and health-care crises, impe...

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Bibliographic Details
Published in:Journal of Central Banking Theory and Practice (Podgorica) 2022-05, Vol.11 (2), p.187-208
Main Author: Zharikov, Mikhail V
Format: Article
Language:English
Subjects:
BRICS
credit surplus
digital currency
digital money revenue
F14
F17
liberal and gradualist approaches
shared interest rate
virtual money market
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Summary:The purpose of the research is to offer a comparative analysis of a libertarian and gradual approach to introducing a market interest rate. The topic is time-relevant since the economies of the emerging markets today face difficult challenges posed by economic, financial and health-care crises, impending price stability, future growth and money market equilibrium. A digital currency is a special issue today due to the outbreak of covid-19, which has made many central banks think about contactless means of payment. The author revealed policy tools to circulate a hypothetical digital currency for the BRICS, including a shared interest rate and the quantity of digital money in circulation needed for the penta-lateral use. The theoretical significance is that the research tries to lay the foundation for a model to launch a virtual regional money market for the countries of the BRICS as well as their partners in wider parts of Europe and Asia. In practical terms, the article recommends a number of tools for monetary policy to deal with the coronavirus crisis of 2020.
ISSN:2336-9205
2336-9205
DOI:10.2478/jcbtp-2022-0019