Discussion Paper

No. 2019-49 | September 10, 2019
The e-monetary theory


The author develops a dynamic model with two types of electronic money: reserves for transactions between bankers and zero-maturity deposits for transactions in the non-bank private sector. Using this model, he assesses the efficacy of unconventional monetary policy since the Great Recession. After quantitative easing, keeping the interest on reserves near zero too long might create deflation. The central bank can safely get out of the “low rate-cum-deflation” trap by “raising rate and raising money supply”.

JEL Classification:

E4, E5


  • Downloads: 652


Cite As

Duong Ngotran (2019). The e-monetary theory. Economics Discussion Papers, No 2019-49, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2019-49

Comments and Questions

Anonymous - Referee Report 1
October 07, 2019 - 09:59

see attached file

Duong Ngotran - Response to Referee 1's Report
October 19, 2019 - 03:42

I thank the referee for reading my work and providing thoughtful comments on it. My response could be found in the below attached file.

Anonymous - Referee Report 2
October 24, 2019 - 08:22

see attached file

Duong Ngotran - My reply to Referee 2
November 04, 2019 - 01:43

I thank Referee 2 for providing thoughtful comments on my paper. My response could be found in the below attached file: