arXiv subjects

Maria Elena Filippin

Publications and source records attributed to Maria Elena Filippin.

3 recordsLinked to original sources

arXiv2026

Who's in? Household-targeted Government Policies and the Role of Financial Literacy in Market Participation

This paper examines how household-targeted government policies influence financial market participation conditional on financial literacy, focusing on potential Central Bank Digital Currency (CBDC) adoption. Due to the lack of empirical CBDC data, I use the 2012 introduction of retail Treasury bonds in Italy as a proxy to study how financial literacy affects households' likelihood to engage with a new government-backed retail instrument. Using the Bank of Italy's Survey on Household Income and Wealth, I show that households with some but low financial literacy are more likely to participate in the Treasury bond market than other groups following the introduction of the new instrument. Based on these findings, I develop a theoretical model to study how financial literacy affects CBDC demand through portfolio choice: low-literate households with limited access to risky assets allocate more wealth to CBDC, while high-literate households use risky assets to safeguard against income risk. These results highlight the role of financial literacy in shaping portfolio choices and CBDC adoption.

econ.TH↗

arXiv2026

Central Bank Digital Currency: Demand Shocks and Optimal Monetary Policy

We study the implications of a central bank digital currency (CBDC) for the transmission of household preference shocks and for welfare in a New Keynesian framework where the CBDC competes with bank deposits for household resources and banks have market power. We show that an increase in the perceived benefit of CBDC has a mildly expansionary effect, weakening bank market power and significantly reducing the deposit spread. As households economize on liquid asset holdings, they reduce both CBDC and deposit balances. However, the degree of bank disintermediation is low, as deposit outflows remain modest. We then examine the welfare implications of CBDC rate setting and find that, compared to a non-interest-bearing CBDC, the gains with standard coefficients for a CBDC interest rate Taylor rule are modest, but they become considerable when the coefficients are optimized. Welfare gains increase with the CBDC benefit, and the optimal policy responses vary with the banking market structure.

econ.TH↗

arXiv2025

Central Bank Digital Currency with Collateral-constrained Banks

We analyze the risks to bank intermediation following the introduction of a central bank digital currency (CBDC) competing with commercial bank deposits as households' source of liquidity. We revisit the result in the literature regarding the equivalence of payment systems introducing a collateral constraint on banks borrowing from the central bank. Comparing two equilibria with and without the CBDC, we find that even with this constraint, the central bank can ensure the same equilibrium allocation and price system by offering loans to banks. However, to access loans, banks must hold collateral at the expense of extending credit to firms. Thus, while the CBDC introduction has no real effects on the economy, it does not guarantee full neutrality as it affects banks' business models. In a dynamic model extension, we examine the effects of an increase in the CBDC and show that the CBDC does not cause bank disintermediation or crowd out deposits but may foster an expansion of bank credit to firms.

econ.TH↗