Different forms of CBDC are possible, with different implications for the monetary policy transmission mechanism, for the stability of the financial system and for payment systems – hence the caution.
A Slowdown in Growth An important rationale for a spontaneous slowing -- that is, one occurring without further Fed tightening -- is that the pattern of consistent upside surprises across aggregate demand components over 1997 is unlikely to be repeated. In this case, the explanation for the faster-thanexpected growth over 1997 provides a rationale for a slowdown over 1998.