Estimating the Impact of Introducing the e-krona in the Swedish Economy

Abstract: This MSc Thesis analyzes the impact of introducing the e-krona in Sweden using a Dynamic Stochastic General Equilibrium (DSGE) model. The model includes the possibility for (i) patient households to convert their deposits into the e-krona and (ii) wholesale banks to borrow money from the Central Bank through a market funding mechanism. The results indicate a higher pass-through rate, which enables Centrals Banks to have a more direct impact to the economy through monetary policy.