Maximilian Guennewig

Maximilian Guennewig

PhD Candidate in Economics

Department of Economics

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Key Expertise
Monetary Economics, Macroeconomics, Banking, Financial Intermediation

About me

Post-doc, University of Bonn

Research interests
Monetary Economics, Macroeconomics (primary)
Banking, Financial Intermediation (secondary)

Job market paper
Money talks: Information and Seignorage

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This paper analyses the consequences for monetary policy arising from private, centralised digital currencies such as Alipay or Facebook's Libra. Firms introduce private currencies to generate information on consumers and seignorage revenues. The paper highlights three important results. First, information shapes the degree of currency competition as firms do not accept their competitors' currencies. Second, producers issuing private currency implement a variant of the Friedman rule. To maximise the sum of product profits and seignorage revenues, they either set private currency interest rates to zero or give compensating product discounts. Public currency is unable to compete unless the central bank sets their interest rate to zero, resulting in deflation. Third, inflationary pressures arise if firms form currency consortia but decision powers and seignorage claims are concentrated in the hands of one firm.

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Publications and additional papers


Placement Officer
Professor Mark Schankerman

Professor Ricardo Reis

Dr Kevin Sheedy
Dr Shengxing Zhang

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Office Address
Department of Economics,
London School of Economics and Political Science,
Houghton Street, London WC2A 2AE