Central Bank digital currencies are a challenge to the international monetary and financial system. Since development of cryptocurrency, such as bitcoin, modern world has faced possibility technological transformation providing form payment for economy household. In addition, announcement currency that would have global reach, Libre issued by social network Facebook, raised questions about lega...

Through the history and since 1933, the Iranian rial has declined from 11.2 rials per dollar to almost 8600 rials per dollar today in the parallel or black market. At the same time the official rate has been kept at artificial level most of the time, not consistent with other macro conditions of the country. Historically, however, the Central bank has adjusted the official rate and brought it i...

Throughout history, financial innovation was always interlinked with shifts in the word’s economic centre of gravity and emergence new power hubs. Nowadays, huge interest central bank digital currencies proves that we must have arrived at a turning point development money. Most studies, however, focus on issues related to CBDCs, only few embark discussing historical analogies geopolitical conse...

It is obvious that an optimal policy should consider main dimensions of the phenomenon that can affect the transmission mechanism of that policy. In an open economy, it is expected that variables of the foreign sector play important role in its economic behavior. Therefore, it needs that any optimal policy in an open economy to design in such a way which involves changes in the foreign sector. ...

In recent work (Gopinath and Stein 2017), we explore how a currency like the dollar can become entrenched as a dominant global currency, focusing on the two-way feedback between trade invoicing and banking structure. The basic idea is that when a larger share of a country’s imports are invoiced in dollars, its citizens have a greater demand for dollar-denominated safe claims. This in turn leads...

In many open-rich financially developed countries, the central bank (CB) plays an important role in the development of a sound and effective financial system in particular, and economic development and stabilization of the economy in general. In these countries, the governance of the CB is based on the three main principles of New Public Management (NPM) known as the three ‘pillars’, which incl...