Treasury Absorption
Stablecoin reserve growth absorbs Treasuries, concentrating holdings and degrading monetary transmission.
Impact Score
Score Reasoning
- Importance
- Important mechanism in Paper 7 (settlement feedback). Specific channel of monetary policy degradation but not core theory.
- Novelty
- New formalization of stablecoin reserve accumulation as Treasury concentration mechanism within CES framework.
- Quality
- Clear presentation of the Treasury absorption mechanism with good empirical grounding.