Central banks

The digital euro: awareness, adoption and household portfolios

12/22/2025 European Central Bank Central banks

Based on a series of novel experiments fielded within the ECB’s Consumer Expectations Survey, we provide evidence on the attitudes of euro area consumers towards a possible central bank digital currency (CBDC). We document substantial socio‑demographic heterogeneity in consumers’ awareness and willingness to adopt a CBDC. According to survey responses, a sizeable share of around 45% of households would be interested in potentially adopting this new asset.

The economics of natural capital

12/19/2025 European Central Bank Central banks

We develop a framework underscoring the importance of incorporating natural capital into growth models and policy discussions, recognizing its role as a productive input and as a sourceof enjoyment. Both firms and the government face the trade-off between exploitation and conservation and can (but do not have to) engage in costly conservation. Firms optimally conserve natural capital to support future production but underinvest compared to the social optimum. Public conservation complements private action, shifting focus from current consumption to future growth.

The economics of natural capital

12/19/2025 European Central Bank Central banks

We develop a framework underscoring the importance of incorporating natural capital into growth models and policy discussions, recognizing its role as a productive input and as a sourceof enjoyment. Both firms and the government face the trade-off between exploitation and conservation and can (but do not have to) engage in costly conservation. Firms optimally conserve natural capital to support future production but underinvest compared to the social optimum. Public conservation complements private action, shifting focus from current consumption to future growth.

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