Payment data, information disclosure, and privacy☆

Kang, Kee-Youn ORCID: 0000-0003-4398-6079 and Wang, Zijian (2026) Payment data, information disclosure, and privacy☆ JOURNAL OF MONETARY ECONOMICS, 161. 103957-. ISSN 0304-3932, 1873-1295

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Abstract

This paper develops a general equilibrium framework to examine the welfare implications of aggregate-demand information derived from payment data. The disclosure of such information tends to improve aggregate welfare when interest rates are low but may reduce welfare when rates are high. If a central bank controls information disclosure, it can craft noisy messages that encourage investment and benefit welfare through a form of Bayesian persuasion. If the information is instead produced by private banks and traded in a competitive market, excessive information production may happen. Finally, privacy concerns may dissuade some consumers from using digital payments, thereby decreasing the precision of aggregate-demand information, but it need not reduce welfare.

Item Type:	Article
Uncontrolled Keywords:	Payment system, Central bank communication, Bayesian persuasion, Privacy, Central bank digital currency
Divisions:	Faculty of Humanities & Social Sciences Faculty of Humanities & Social Sciences > School of Management Faculty of Humanities & Social Sciences > Faculty of Humanities & Social Sci (All T&R Staff) Faculty of Humanities & Social Sciences > School of Management > Economics Faculty of Humanities & Social Sciences > School of Management > School of Management (T&R Staff)
Depositing User:	Symplectic Admin
Date Deposited:	22 Jun 2026 09:29
Last Modified:	20 Jul 2026 15:46
DOI:	10.1016/j.jmoneco.2026.103957
Related Websites:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3199046
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