
About Sayuri Shirai
Sayuri Shirai is a professor of economics at Keio University, a former visiting scholar at the Asian Development Bank Institute, and a former policy board member at the Bank of Japan.Challenging times for central banks: Low inflation, monetary policy, and digital currency

The coronavirus disease (COVID-19) outbreak has transformed the global monetary policy landscape. The sharp global economic slowdown caused by the spread of the virus and the various countermeasures embarked on by governments under states of emergency (such as quarantines, policies to restrict mobility, school closures, and restrictions and limitations on business operations) prompted many central banks to implement substantial monetary easing from March 2020 along with massive fiscal stimulus measures. As a result of these measures, a growing number of central banks have faced the effective (or zero) lower bound or approached it in their policy rates.
What explains the growing global demand for cash?

In recent years, cashless payment methods have become increasingly prevalent around the world due to the use of various innovative tools and convenient financial services through mobile phones. This trend is contributing to greater efficiency in our economies and financial systems. Nevertheless, a puzzling phenomenon is that the demand for cash has been rising in many countries. This means that growth in the demand for cash reflects factors other than the transaction motive used for payment. These factors might include opportunity cost, precautionary motives, and other motives such as aging and demand from abroad.
Will Facebook’s Libra scramble the regulatory calculus for crypto assets?

There are currently over 2,000 crypto assets like Bitcoin that can be exchanged for goods and services in many countries anonymously, instantaneously, and at any time. These emerging forms of private sector money, or crypto currencies, provide their own units of account and are based on ledger technology such as blockchain which makes the falsification of transaction data difficult. Unlike cash, transactions using crypto assets are also technically traceable and a positive or negative interest rate can be charged, potentially improving the effectiveness of monetary policy.
Search
Subscribe / Connect to Asia Pathways
Subjects
- Agriculture and natural resources
- Capacity development
- Climate change
- Economics
- Education
- Energy
- Environment
- Finance sector development
- Gender
- Governance and public sector management
- Health
- Industry and trade
- Information and Communications Technology
- Infrastructure
- Miscellaneous
- Population
- Poverty
- Private sector development
- Regional cooperation and integration
- Sanitation
- Social development and protection
- Transport
- Urban development
- Video Blog
- Water
Recent Posts
- Achieving resilient emerging market economies amid the macroeconomic challenges of the 21st century
- Fintech development transforming the financial landscape in the People’s Republic of China
- Repurposing food waste: A circular economy approach for the food system
- Digital transformation poses potential risks for stability and the financial industry
- Making citywide inclusive sanitation a reality through capacity development
Recent Comments