As I just discussed, the pace and timing of how central banks around the world proceed with normalization, and the importance of balance sheet policy relative to changes in short term rates in these normalization plans, could have important implications for exchange rates and financial conditions globally. - 12 -  Appendix: Description of Stylized Model and Simulation Results A.
It facilitates trade, enables transactions, and lubricates the economy. But what does money look like? Is it metal coins, paper banknotes, account entries on bank ledgers, or something completely different? The truth is, it is all of the above, and it keeps evolving.