The Impact of Central Bank Digital Currencies on Monetary Policy Transmission and Financial Inclusion
Posted: Sep 11, 2025
Abstract
This research presents a comprehensive analysis of Central Bank Digital Currencies (CBDCs) through a novel methodological framework that integrates agent-based modeling with network theory to examine their dual impact on monetary policy transmission and financial inclusion. Unlike previous studies that treat these aspects separately, our approach captures the complex interdependencies between macroeconomic stability and financial accessibility. We developed a sophisticated simulation environment incorporating heterogeneous agents including households, commercial banks, and the central bank, operating within a dynamic network structure that evolves based on transaction patterns and policy interventions. Our findings reveal that CBDCs can significantly enhance the speed and precision of monetary policy transmission, reducing the conventional policy lag by approximately 40-60
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