It is currently unclear how popular Libra, Facebook's proposed new global cryptocurrency, might become, and what problems this may cause. But inflation – and policymakers’ reduced ability to control it – has to figure prominently on the list of possible risks.
MUMBAI – Facebook’s new global digital currency, Libra, which the company plans to launch as early as 2020, could transform the world. But no one – including the founders of this ambitious economic engineering project – can fully anticipate the currency’s possible ramifications. And monetary policymakers should be especially worried, because they may find it much harder to control unemployment and inflation in a Libra world.
MUMBAI – Facebook’s new global digital currency, Libra, which the company plans to launch as early as 2020, could transform the world. But no one – including the founders of this ambitious economic engineering project – can fully anticipate the currency’s possible ramifications. And monetary policymakers should be especially worried, because they may find it much harder to control unemployment and inflation in a Libra world.